Paul Krugman: The Story of Our Time

Those of us who have spent years arguing against premature fiscal austerity have just had a good
two weeks. Academic studies that supposedly justified austerity have lost credibility; hard-liners in
the European Commission and elsewhere have softened their rhetoric. The tone of the
conversation has definitely changed.

My sense, however, is that many people still don’t understand what this is all about. So this seems
like a good time to offer a sort of refresher on the nature of our economic woes, and why this
remains a very bad time for spending cuts.