On August 2, 2012 New York Times Columnist and economist Paul Krugman writes:
One answer is government spending to support the economy while the private sector repairs its balance sheets; now is not the time for austerity, and cuts in government purchases have been a major economic drag. Another answer is aggressive monetary policy, which is why the Federal Reserve’s refusal to act in the face of high unemployment and below-target inflation is a scandal.
But fiscal and monetary policy could, and should, be coupled with debt relief. Reducing the burden on Americans in financial trouble would mean more jobs and improved opportunities for everyone.
http://www.nytimes.com/2012/08/03/opinion/krugman-debt-depression-demarco.html?_r=1&hp
