More Fiscal Stimulus Needed? In New York Times articles and in blogs, economists Paul Krugman and Joseph
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More Fiscal Stimulus Needed?
In New York Times articles and in blogs, economists Paul Krugman and Joseph Stiglitz say there is a need for more fiscal stimulus in both the United States and Europe despite the large federal budget deficit and large deficits in some European countries.
a. Do you agree with Krugman and Stiglitz?
Why?
b. What are the dangers of not engaging in further fiscal stimulus?
c. What are the dangers of embarking on further fiscal stimulus when the budget is in deficit?
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