Saturday, January 09, 2016

DeLong and monetary financing

Future Economists Will Probably Call This Decade the 'Longest Depression' by Brad DeLong
What we need now is 1) debt relief to unwind the overhang and 2) much tighter financial regulation to prevent the growth of new fragilities. And if those prove inconsistent with full recovery, then we need massive government spending on infrastructure and other investments financed by money printing until full employment is reattained.

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