Well, it really depends what the Liberals will be spending the deficit on. If they spend most of it on useful infrastructure, as JKR hopefully imagines, then yes, that would help the economy, just as Krugman says. On the other hand, tax cuts for corporations and the upper middle class, more international military adventures and the like do little to stimulate the economy. So, it'll be interesting to see in the budget just where this larger deficit is spent.
I agree.