Friday, March 18, 2011

Yes, We're In A Liquidity Trap

Krugman explains, Yes, We're In A Liquidity Trap "Some comments on various blog posts ask what evidence we have that liquidity trap economics is any different from normal economics. Um, the answer is staring us in the face: the failure of interest rates to rise despite very large budget deficits." It's short a worth a read. There's more in his column, The Forgotten Millions.

Brad DeLong follows up to questions about his posts about interest rates.

Krugman and DeLong have been right in their predictions for the last two years, I don't understand why people aren't listening to them. I'm no expert, but I find their explanations understandable and compelling.

No comments: