Vuk Vukovic reminds us, over at the Adam Smith Institute website, of Paul Krugman's desired policy response following the 2001 recession in the States:
The basic point is that the recession of 2001 wasn't a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.
According to Mark Weisbrot over at the Guardian, Krugman is perfect for the US Treasury Secretary job.