Finn Kydland and the Stimulus

In a December 9, 2008, Andina article titled, "Infrastructure investment, best way to face financial crisis", says Nobel in Economics" Finn Kydland gives what sounds like guarded advice on dealing with the international financial crisis. The article reads

Infrastructure investment is one of the best ways to face the international financial crisis due to its long term positive effects on the productivity of the country, Nobel Prize in Economics for 2004, Finn Kydland, stated Tuesday.

"I do not trust too much on measures addressed to aliviate situations in the short term since, usually, these measures are likely to have negative effects in the long term, and long term is what really matters”, señaló.

For example, he said, a fiscal policy such a temporal reduction of taxes has little effect, so that infrastructure investment is better to face financial crisis.

“When the economy grows and the highways do not progress accordingly, the economy becomes ineffective, hence, investing in transport is a good idea", he stated.
He said infrastructure investment is one of the most recommended measures by the
Copenhagen Consensus (2004) for Latin America, and is also mentioned in the Consulta de San José en Costa Rica (2007).