noteworthy wrote:
In the short run, the only way to avoid a deep slump when almost everyone in the private sector is trying to pay down debt simultaneously is for the government to move in the opposite direction—to become, in effect, the borrower of last resort, issuing debt and continuing to spend as the private sector pulls back. In the heat of a Minsky moment, budget deficits are not only good, they are necessary.
Is there any credible economist who disagrees with this? If not - why has the Republican party aligned their entire strategy in opposition to this idea?
