Krugman discusses the collapse of consumer confidence and consumption itself in the July to September period.
He then invokes two words that should leave all who depend on using money to purchase goods and services very nervous: liquidity trap.
This phenomenon was explained by John Maynard Keynes, and his solution was to increase aggregate demand in the economy by increasing government spending.
Oh, I see that in the last three paragraphs Krugman advocates exactly that policy.
So does "Some Defunct Economist." Hmm.
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