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The Case for Permanent Stimulus (Wonkish) Check out our low, low interest rates. Paul Krugman

By Paul Krugman Opinion Columnist. NYT March 7, 2020

Wednesday 11 March 2020, by Carlos San Juan


I hereby propose that the next U.S. president and Congress move to permanently spend an additional 2 percent of GDP on public investment, broadly defined (infrastructure, for sure, but also things like R&D and child development) — and not pay for it.

The starting point for my argument is the astonishing drop in interest rates over the past few weeks. They were historically very low even a year ago, but at the time of writing the 10-year rate was only 0.76 percent. That’s below the rates on Japanese debt during the Lost Decade


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