The government isn't "printing money" in the sense that this phrase commonly denotes. The government is selling Treasury securities on the open market. The rate of interest right now is quite low and has been for the past 7 years. Krugman isn't advocating a belief that all debt all the time is a good thing. He's advocating a belief that in the current situation debt is not the primary concern right now.
Deflation is a bad thing for borrowers. It's a good thing for people who have no loans. I think the idea is that deflation is bad for the country because it's bad for banks and large multi-national companies. It would squeeze consumers who have mortgages and credit card debt and student loan debt. Thus this would contract the economy. As I understand these things. I'm not an economist.
Deflation is a bad thing for borrowers. It's a good thing for people who have no loans. I think the idea is that deflation is bad for the country because it's bad for banks and large multi-national companies. It would squeeze consumers who have mortgages and credit card debt and student loan debt. Thus this would contract the economy. As I understand these things. I'm not an economist.