“What continues to amaze me is this: Japan’s current strategy of massive, unsustainable deficit spending in the hopes that this will somehow generate a self-sustained recovery is currently regarded as the orthodox, sensible thing to do – even though it can be justified only by exotic stories about multiple equilibria, the sort of thing you would imagine only a professor could believe. Meanwhile further steps on monetary policy – the sort of thing you would advocate if you believed in a more conventional, boring model, one in which the problem is simply a question of the savings-investment balance – are rejected as dangerously radical and unbecoming of a dignified economy.”
How about Treasury Secretaries Timothy Geithner or Hank Paulson?
No, no and no.
Drum roll please…
Paul Krugman! 09/21/1999
I know it’s nerdy but COME ON! That’s hilarious! Oh how times change, we knew that Nobel Prize winning mind was in there somewhere, would love to hear more of it 🙂