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PAUL KRUGMAN: That '30s Show

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It has been a rude shock to see so many economists with good reputations recycling old fallacies - like the claim that any rise in government spending automatically displaces an equal amount of private spending, even when there is mass unemployment - and lending their names to grossly exaggerated claims about the evils of short-run budget deficits.

Read the rest of the story HERE:

At www.nytimes.com

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