Ferguson’s op-ed is a fearsome screed against Keynesians (read: Krugman), for the apparent crime of having either forgotten or misrepresented the lessons of the Great Depression.
This is the most important economic debate in the world at the moment. It would be nice if it could be conducted without resorting to such reductionist, straw man argument.
A non-economist (like me) reading Ferguson is left to ask: are we to take no lessons from Japan? Are we to take no lessons from the demonstrated positive relationship between discretionary fiscal stimulus and above-expected growth in the G20?
UPDATE: Another great post from Krugman, but it’s full of facts, so I don’t imagine that it will persuade the anti-stimulus brigade.