Today's employment report showed that the unemployment rate is up a little, to 9.6 percent, and that payroll employment over the past three months dropped by 285,000. How should the government respond? In this video Paul Krugman, Nobel Prize-winning KEYNESIAN economist, says what the government needs to do is clear: spend more money.
We'll see in chapters 9 and 10 the theoretical basis for this Keynesian view.
