Friday , August 17 2018
Home / Robert Murphy: Free Advice / Krugman Should Love Trump’s Infrastructure Plan

Krugman Should Love Trump’s Infrastructure Plan

Summary:
Seriously. An excerpt: Krugman should be a huge fan of this approach. After all, Krugman tells us that sure, the economy seems to be doing OK in the first year under Trump, but that “when the next big shock comes…we’ll need an effective, coherent response from officials beyond the world of central banking.” This is because—Krugman claims—we are dangerously close to the “zero lower bound” world of the liquidity trap, so that the Fed can’t just cut interest rates when the next shock hits us. In that context, then, Krugman should be ecstatic to learn that the Trump Administration has already gotten the wheels in motion for private investors to put up .3 trillion on the front end to build infrastructure, in exchange for revenues to be collected over the following

Topics:
Robert Murphy considers the following as important: ,

This could be interesting, too:

Robert Murphy writes Is It Intellectually Honest to Chortle About This?

Robert Murphy writes Is It Intellectually Honest to Chortle About This?

Robert Murphy writes What I Said to the “Mises Caucus” of the Libertarian Party

Robert Murphy writes Potpourri

Seriously. An excerpt:

Krugman should be a huge fan of this approach. After all, Krugman tells us that sure, the economy seems to be doing OK in the first year under Trump, but that “when the next big shock comes…we’ll need an effective, coherent response from officials beyond the world of central banking.” This is because—Krugman claims—we are dangerously close to the “zero lower bound” world of the liquidity trap, so that the Fed can’t just cut interest rates when the next shock hits us.

In that context, then, Krugman should be ecstatic to learn that the Trump Administration has already gotten the wheels in motion for private investors to put up $1.3 trillion on the front end to build infrastructure, in exchange for revenues to be collected over the following decades. That is exactly the kind of plan to promote investment spending via deficit finance that Krugman thinks is necessary when the Fed is rendered impotent because interest rates hit 0%.

Robert Murphy
Christian, Austrian economist, and libertarian theorist. Research Prof at Texas Tech and author of *Choice*. Paul Krugman's worst nightmare.

Leave a Reply

Your email address will not be published. Required fields are marked *