For all of the talk of Krugman receiving his recent Nobel Prize for his theories on trade, nonetheless it seems to me that the committee was awarding the prize posthumously to John Maynard Keynes. Krugman, after all, is not a “neo-Keynesian;” no, he is a true-blue, out-and-out old time religion Keynesian.

His latest column, “Let’s Get Fiscal,” is right out of Keynes’ General Theory. While not using the term “liquidity trap,” nonetheless Krugman describes such a situation, and then offers “fiscal policy” as a way out:

…there’s a lot the federal government can do for the economy. It can provide extended benefits to the unemployed, which will both help distressed families cope and put money in the hands of people likely to spend it. It can provide emergency aid to state and local governments, so that they aren’t forced into steep spending cuts that both degrade public services and destroy jobs. It can buy up mortgages (but not at face value, as John McCain has proposed) and restructure the terms to help families stay in their homes.

And this is also a good time to engage in some serious infrastructure spending, which the country badly needs in any case. The usual argument against public works as economic stimulus is that they take too long: by the time you get around to repairing that bridge and upgrading that rail line, the slump is over and the stimulus isn’t needed. Well, that argument has no force now, since the chances that this slump will be over anytime soon are virtually nil. So let’s get those projects rolling.

He then ends with the following howler:

If Barack Obama becomes president, he won’t have the same knee-jerk opposition to spending. But he will face a chorus of inside-the-Beltway types telling him that he has to be responsible, that the big deficits the government will run next year if it does the right thing are unacceptable.

He should ignore that chorus. The responsible thing, right now, is to give the economy the help it needs. Now is not the time to worry about the deficit.

Oh, yes. The Beltway crowd calls for “fiscal restraint.” Right. Krugman must have bought some pretty powerful weed with that $1.4 million he received for winning the Nobel.