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Saturday, November 16, 2013

'Secular Stagnation, Coalmines, Bubbles, and Larry Summers'

Paul Krugman is annoyed (each of the four points below is discussed in detail):

Secular Stagnation, Coalmines, Bubbles, and Larry Summers, by Paul Krugman: I’m pretty annoyed with Larry Summers right now. His presentation at the IMF Research Conference is, justifiably, getting a lot of attention. And here’s the thing: I’ve been thinking along the same lines, and have, I think, hinted at this analysis in various writings. But Larry’s formulation is much clearer and more forceful, and altogether better, than anything I’ve done. Curse you, Red Baron Larry Summers!
OK, with professional jealousy out of the way, let me try to enlarge on Larry’s theme.
1. When prudence is folly ...
2. An economy that needs bubbles? ...
3. Secular stagnation? ...
4. Destructive virtue ...
I could go on, but by now I hope you’ve gotten the point. What Larry did at the IMF wasn’t just give an interesting speech. He laid down what amounts to a very radical manifesto. And I very much fear that he may be right.

    Posted by on Saturday, November 16, 2013 at 01:17 PM in Economics | Permalink  Comments (96)


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