Paul Krugman, Laureate of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2008 at a press conference at the Swedish Academy of Science in Stockholm (Photo credit: Wikipedia)
By Paul Krugman – One of the remarkable things about the ongoing economic crisis is the way so many people have responded to events by adopting doctrines that would magnify our problems. The woes of Spain and Ireland demonstrate that balanced budgets and low debt in good times offer no protection against crisis, so European leaders make tougher fiscal rules the core of their agenda. The broader euro crisis demonstrates the downside of fixed exchange rates and inflexible monetary policy, so the right doubles down on the gold standard. The financial meltdown demonstrates the need for effective bank regulation; the right demands even less government intervention. more> http://tinyurl.com/7hfx3hv
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