How to Make the Economy Even Worse

Earlier this week, the Federal Reserve Bank of New York published a blog post about the ?mistake of 1937,? the premature fiscal and monetary pullback that aborted an ongoing economic recovery and prolonged the Great Depression. As Gauti Eggertsson, the post?s author (with whom I have done research) points out, economic conditions today ? with output growing, some prices rising, but unemployment still very high ? bear a strong resemblance to those in 1936-37. So are modern policy makers going to make the same mistake?

Paul Krugman

Mr. Eggertsson says no, that economists now know better. But I disagree. In fact, in important ways we have already repeated the mistake of 1937. Call it the mistake of 2010: a...

Related Topics: economy

Source: http://www.realclearpolitics.com/2011/06/02/how_to_make_the_economy_even_worse_256582.html

sweep troy dwight howard brigitte bardot nascar news ffa angels and demons