Business

Paul Krugman: 'The Austerian Position Has Imploded'

Nobel Prize-winning Economist Paul Krugman, professor of international trade and economics at Princeton University, pauses during a Bloomberg Television interview in New York, U.S., on Monday, Jan. 28, 2013. Krugman discussed the performance of bonds, Fed monetary policy, and the U.S. economy compared with that of Japan. Photographer: Scott Eells/Bloomberg via Getty Images
Nobel Prize-winning Economist Paul Krugman, professor of international trade and economics at Princeton University, pauses during a Bloomberg Television interview in New York, U.S., on Monday, Jan. 28, 2013. Krugman discussed the performance of bonds, Fed monetary policy, and the U.S. economy compared with that of Japan. Photographer: Scott Eells/Bloomberg via Getty Images

Economic debates rarely end with a T.K.O. But the great policy debate of recent years between Keynesians, who advocate sustaining and, indeed, increasing government spending in a depression, and austerians, who demand immediate spending cuts, comes close -- at least in the world of ideas.