The Bad Logic Of Fiscal Austerity

Paul Krugman:

The Bad Logic Of Fiscal Austerity: So, one more time: here’s an attempt to put together some key arguments about why the rush to fiscal austerity is deeply misguided.... [T:]he US Treasury can currently issue long-term inflation-protected securities at an interest rate of 1.75%. So the long-term cost of servicing an extra trillion dollars of borrowing is $17.5 billion, or around 0.13 percent of GDP.... Almost surely, the true budget cost of $1 trillion in stimulus would be...