$787 bn not enough to revive US economy: Paul Krugman
Originally reported on Moneycontrol
US President Barack Obama signed the USD 787 billion Stimulus Bill into law yesterday. This is one of the biggest economic rescue efforts in US history. However, the big question is: Is it enough?
In an exclusive interview with CNBC, Nobel Prize winning Economist and Princeton Professor Paul Krugman, said the USD 787 billion stimulus package is not sufficient to revive the economy. “The gap between what the economy could produce and what it will actually produce is well over USD 2 trillion over the next couple of years. So it is going to need more.”
Krugman went on to say, “The banking issue requires a separate plan and we are waiting for a real bank plan. The Geithner announcement last week was kind of a holding thing. It didn’t really tell us what they are going to do.”
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