Although the depression scare is over, the economy is likely to remain sluggish for some years, Robert Shiller, Yale University economics professor, told CNBC Wednesday.
“The psychology hasn’t come back yet; we’re still in the doldrums,” he said. “I’m still not that bullish on the economy at this point.”
While investing in infrastructure is a good way to boost the economy, Shiller said a second stimulus is needed. "I wish we'd gotten the first one out faster, it's going way to slowly," Shiller said. "We still have fundamental problems. Loans aren't being made aggressively enough."
Shiller said officials need to think about rebate checks going out to consumers along with infrastructure spending. "I think these worries about the [government] debt are still premature," Shiller said. "The bigger concern is that we get out of this recession."
He also said tax breaks for small businesses would be beneficial. "I think some encouragement of small businesses is a good idea," said Shiller.