Thursday, June 10, 2010

Krugman on Sachs Joining Fiscal Conservatives

This post notes that Jeffrey Sachs, best known currently for his work to alleviate extreme poverty in the developing world, weighs in via Financial Times as a deficit hawk. Sachs thinks that the stimulus is too slow, and the need really goes to investment, not immediate spending. Continuing his ongoing argument, Krugman, via Brad DeLong, argues that Sachs has no firm ground for this conclusion. This may all seem quite ethereal, but whatever path we follow will create very real results—the only question is whether those results will be for good or ill.

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