not often that two nobel laureate economists speak out on the same issue in agreement.
I don't always agree with Krugman's columns, as often he speaks from the more liberal portion of his conciousness. But I respect the man immensely, and find his economic predictions to often be right on the money.
From the Huffington Post....
Also, Joseph Stiglitz has been saying the same things, and actually, before Paul.
Part of the answer is both economists do not like the projections for GDP grow for 2010, before their recent revisions. They did not seem aware of the recent revisions. As Bloomberg has explained them –the economy is poised for a “surge” as Dean Maki, the most-accurate forecaster in the Bloomberg survey, sees it, with growth in the area of 3.5% for the year. The two economists do not consider even that a real surge, especially when recovering from a deep recession, implying that, although he has denied it, we should have more of a V shaped recovery than both have foreseen in the past. It is the last half of 2010 that bothers both economists. They don’t see where the source of recovery or engine of growth is going to come from, especially when the effects of the first stimulus package totally wears off. It is noteworthy here that we have two arch Keynesians recognizing that the stimulus efforts of government by means of deficit spending are transient and do wear off, giving us only transitory boosts in GDP.