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How to get growth

Nobel laureate Paul Krugman argues in this Prospect roundtable that countries could beat recession by spending more. Leading commentators ask whether this would make things worse

By Paul Krugman   July 2012

Paul Krugman, Nick Carn, Rudi Bogni, Kwasi Kwarteng, Stephanie Flanders, Richard Lambert, Samuel Brittan, Shriti Vadera, Gavyn Davies

“Not now,” is Paul Krugman’s short answer to the question of when governments should make cuts to repair their finances. Austerity should be reserved for the good times, he argues; in the bad times—like now—governments should pour money into public spending projects to keep recession at bay.

Four years after the start of the financial crisis, those arguments (and the 2008 Nobel Prize in economics) have made Krugman a figurehead of the case for large quantities of government spending, as advocated by…

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