Once registered, you can:

  • - Read additional free articles each month
  • - Comment on articles and featured creative work
  • - Get our curated newsletters delivered to your inbox

By registering you agree to our privacy policy, terms & conditions and to receive occasional emails from Ad Age. You may unsubscribe at any time.

Are you a print subscriber? Activate your account.

Watch the Video

Paul Krugman Explains What Can Save Our Troubled Economy

It's a Problem of Inadequate Demand, Nobel Prize Winner Says

Published on .

Paul Krugman, op-ed columnist at The New York Times and Nobel Prize winner, explained at the ANA annual conference that consumers' efforts to save money are actually hurting the economy. "The basic problem we have now is that the economy is depressed because people don't want to spend," he said. And the problem can't be solved in the usual way, that is, "by having the Fed cut interest rates." Instead, the U.S. government could buck the saving trend by running deficits, spending, he said, "so as to push up the economy's performance."
Advertising Age Embedded Player
ANA 2010: Paul Krugman
Most Popular
In this article: