Although this interview was conducted some twelve months ago Professor Krugman’s arguments about how to end the Great Recession are more potent than ever. Professor Krugman is a well known Keynesian and he has been advocating for more government expenditure. Although the government in the UK are extremely unlikely to change from its programme of fiscal consolidation, empirical evidence does suggest that substantial government spending is the most effective method to restoring economic growth during a recession. Krugman used the example of America post 1930 and Roosevelt’s “New Deal,” an economic plan designed to boost the American economy through government spending.
