Paul Krugman: Austerity 'Exposed' For What It Really Is

Paul Krugman: Austerity 'Exposed' For What It Really Is
PRINCETON, NJ - OCTOBER 13: Princeton Professor and New York Times columnist Paul Krugman speaks during a press conference to announce his winning the Nobel Prize October 13, 2008 in Princeton, New Jersey. Krugman was given the prestigious award, which includes a prize of $1.4 million for his work on economic trade theory. (Photo by Jeff Zelevansky/Getty Images)
PRINCETON, NJ - OCTOBER 13: Princeton Professor and New York Times columnist Paul Krugman speaks during a press conference to announce his winning the Nobel Prize October 13, 2008 in Princeton, New Jersey. Krugman was given the prestigious award, which includes a prize of $1.4 million for his work on economic trade theory. (Photo by Jeff Zelevansky/Getty Images)

Those of us who have spent years arguing against premature fiscal austerity have just had a good two weeks. Academic studies that supposedly justified austerity have lost credibility; hard-liners in the European Commission and elsewhere have softened their rhetoric.

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