Friday, November 14, 2008
There is an old saying
"A day late and a dollar short", which should be pretty much self explanatory. Dr. Krugman once again warns against this possibility in the federal response to the Bush Depression, which he thinks will not be as bad as the Great Depression.
in normal times modesty and prudence in policy goals are good things. Under current conditions, however, it’s much better to err on the side of doing too much than on the side of doing too little. The risk, if the stimulus plan turns out to be more than needed, is that the economy might overheat, leading to inflation — but the Federal Reserve can always head off that threat by raising interest rates. On the other hand, if the stimulus plan is too small there’s nothing the Fed can do to make up for the shortfall. So when depression economics prevails, prudence is folly.Will Obama get this kind of advice?
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Enough already. Obama needs to appoint Krugman to be his new Secretary of the Treasury.
Won't happen, of course. Krugman would have to shut up if he were Secretary of the Treasury, and shutting up is something Krugman is congenitally unsuited for. But a penguin can dream, hmm?
- Badtux the Dreaming Penguin
Won't happen, of course. Krugman would have to shut up if he were Secretary of the Treasury, and shutting up is something Krugman is congenitally unsuited for. But a penguin can dream, hmm?
- Badtux the Dreaming Penguin
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