What is Paul Krugman's core economic idea?
A central theme in my work is the importance of demand, especially in times of recession. I've argued that insufficient aggregate demand is the primary driver of prolonged economic downturns. This is why I emphasize the need for government intervention, such as fiscal stimulus, to boost spending and pull economies out of depressions. The experience of the Great Depression and the lessons from Keynes are always in the back of my mind.
Ask Paul Krugman the follow-up →