More Krugman on Debt

Paul Krugman has posted one of his more in-depth explanations of his thoughts on debt and getting out of economic depressions.

For the most part, it is reminiscent of my final thoughts on the topic, expressed back here.

The main difference is that Krugman seems to think government borrowing can somehow trigger an eventual reduction in overall debt levels, paving the way for a more balanced economy and future growth. In my view, government borrowing only prolongs the debt party a little, but it will take either money printing or default on a significant scale to bring debt levels back down and right the economy.

More discussion of this topic over at Worthwhile Canadian Initiative