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Paul Krugman for US Treasury Secretary?

    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.

    No comment.

     

    Ryan joined the Centre for Policy Studies in January 2011, having previously worked for a year at the economic consultancy firm Frontier Economics.

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    Comments

    Anonymous - About 2474 days ago

    I think Mickey Mouse could do a better job.

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