Bill, Mark Thornton has a killer post on this subject.  Krugman might be able to wiggle out of the quotation you mention, but how’s he going to get out of this one, from late 2001?  “Meanwhile, economic policy should encourage other spending to offset the temporary slump in business investment.  Low interest rates, which promote spending on housing and other durable goods, are the main answer.”  Much more in Mark’s post.

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