Sunday, August 28, 2011

The Self-Fulfilling Disaster of Austerity Quote of the Week

From Paul Krugman:

At this point the entire advanced world is doing exactly what basic macroeconomics says it shouldn’t be doing: slashing spending in the face of high unemployment, slow growth, and a liquidity trap. It’s a global 1937. And if the result is another recession, the witch-doctors will just demand more bleeding.

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