Sunday, July 31, 2011

The Government Could Make Money by Borrowing

Krugman points out today When People Pay You To Take Their Money "Negative rates at 5 and 7 years; all of 0.38 percent on 10 years. Borrowing to spend on useful infrastructure, or even just to put people to work in ways that enhance revenue down the road, would almost surely improve the long-run fiscal picture. Conversely, austerity now almost surely hurts the budget as well as the economy. So you know what all the serious people insist that we be doing …"

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