Krugman on European Financial Suicide

[Richard Fiero]

I'm not sure that Krugman favors inflation as much as he fears the 
effects of deflation where we postpone buying stuff today because we 
know it will be cheaper tomorrow. The Fed is printing too much money though.

alice wellintown wrote:
>Krug favors inflation because he thinks that it will lower
>unemploymnet and take some of the debt off the backs of the indebted
>masses. But I think he's wrong. Ben has it right. And, although Ben
>insists that he is not being bullied by right wing politicians to
>favor half his mandate or price stability over the other half of his
>mandate or full emplyment, Krug keeps insisting that this is why Ben
>is doing what he is doing. Krug should sit in on some of Ben's
>classes. Ben cares as much for the masses as Krug, but he doesn't buy
>Krug's inlflation solution. I don't either. Does Krug believe it
>anymore? It seems he does. Or, it gives him something to say. Anyway,
>he's wrong. And, while I hate to agree with the right on anything, on
>this they are, dare I say, morally correct. Why should the Fed improve
>the lives of those who did not live within their means during the
>longest period of economic expansion of the 20th century if in doing
>so those who saved and invested will suffer? Those in debt must now
>get their house in order. The Fed can stand on this high moral ground.
>Or, we can hand it over to the political idiots in Washngton who can
>stand only on the mud they sling in our faces as they try to convince
>us they they are responsible and can manage money. Krug is too
>political to think this through. I like Ben.