In an interview with CNBC’s India affiliate, Yale economist Robert Shiller says that governments across the world should be focused on greater economic stimulus — and put concerns about rising national debts and potential inflation on the back-burner — in order to capitalize on the recent jump in confidence.

Shiller says that the recent rise in confidence has not been accompanied by true improvement in the economy, and that there’s a chance that confidence could erode if real progress isn’t made. One interesting note he makes: He says inflation fears during the Great Depression were part of what made the U.S. government reluctant to implement greater stimulus programs, which stymied the recovery and dragged the depression out.

[youtube=http://www.youtube.com/watch?v=zlckqQpvSv0&hl=en&fs=1&]