When asked what he would do if he was running the country, Krugman cited the move earlier today by the British government to acquire controlling stakes in two of the country’s largest banks in exchange for a $64 billion capital infusion as an example of the bold measures needed to stem the crisis. His priorities would be;
“capital injection into the financial system, temporary guarantees on interfinancial institution lending to get the crisis under control, a large-scale fiscal stimulus program aiding state and local governments’ infrastructure spending to get us out of this recession,” Krugman said. “And then, after all that, universal health care.”
Source: Princeton University
Comments are closed.