--- title: "Meaning & Key Takeaway of: What the Depression teaches us is that…" description: "\"What the Depression teaches us is that when the economy is so depressed that even a zero interest rate isn't low enough, you have to put conventional n..." image: "https://sms4smile.com/quotes/i/787/paul-krugman-2255_conventional_what-the-depression-teaches-us-is-that-w_3132359.png" --- # What the Depression teaches us is that when the economy is… ![“What the Depression teaches us is that when the economy is so depressed that even a zero interest rate isn't low enough, you have to put conventional notions of prudence and sound policy aside.” quote by Paul Krugman](https://sms4smile.com/quotes/i/787/paul-krugman-2255_conventional_what-the-depression-teaches-us-is-that-w_3132359.png) [Download](https://sms4smile.com/quotes/i/787/paul-krugman-2255_conventional_what-the-depression-teaches-us-is-that-w_3132359.png) [Open image](https://sms4smile.com/quotes/i/787/paul-krugman-2255_conventional_what-the-depression-teaches-us-is-that-w_3132359.png) > “What the Depression teaches us is that when the economy is so depressed that even a zero interest rate isn't low enough, you have to put conventional notions of prudence and sound policy aside.” [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. When economies are deeply depressed, traditional low‑interest policies may be insufficient, requiring unconventional measures. **In simple terms:** Standard tools fail in severe recessions. Key Takeaway Consider bold policy actions. Themes economics policy crisis management Mood analytical cautious Type economic policy When to use this quote - central banking - government budgeting - financial markets - recovery planning Key Concepts macroeconomics monetary policy fiscal stimulus Questions to Reflect On - What alternative tools could be used? - How to balance short‑term relief with future stability? A Different Perspective Unconventional policies can create long‑term debt risks. ★ ★ ★ ★ ★ No ratings yet [Depression](https://sms4smile.com/quotes/about/depression/) [Economy](https://sms4smile.com/quotes/about/economy/) [Interest](https://sms4smile.com/quotes/about/interest/) [Prudence](https://sms4smile.com/quotes/about/prudence/) [Sound](https://sms4smile.com/quotes/about/sound/) ## Related quotes > [Monetary policy cannot do much about long-run growth, all we can try to do is to try to smooth out periods where the economy…](https://sms4smile.com/quotes/ben-bernanke/monetary-policy-cannot-do-much-about-long-run-growth-all-we-can-try/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [I've always believed that a speculative bubble need not lead to a recession, as long as interest rates are cut quickly enough to stimulate…](https://sms4smile.com/quotes/paul-krugman/i-ve-always-believed-that-a-speculative-bubble-need-not-lead-to-a/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [The world economy is in a nosedive, and understanding what I call "depression economics" - the weird world you get into when even a…](https://sms4smile.com/quotes/paul-krugman/the-world-economy-is-in-a-nosedive-and-understanding-what-i-call/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [When depression economics prevails, the usual rules of economic policy no longer apply: virtue becomes vice, caution is risky and prudence is folly.](https://sms4smile.com/quotes/paul-krugman/when-depression-economics-prevails-the-usual-rules-of-economic-policy/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [A tight-money policy reinforces inequality in two ways. 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