There’s a reason he’s been called Krugtron. Oppose him at your peril. Nevertheless, I’d personally play down the ‘financial catastrophe’ angle of failure to raise the debt ceiling. Krugman in today’s NYT: “it looks quite possible that default would create a huge financial crisis”.I think it would certainly hurt from a GDP point of view, through the […]
Monthly Archives: September 2013
The jobs problem: structural mismatch, or inadequate demand?
Is the high unemployment rate something we have to get used to? “Yes” say the ‘structuralists’ who view the problem as one of mismatch between the jobs needed by the modern economy and the skills offered by the workforce. Since this is a gap that would take a long time to close, we may as […]
Bring on the (USA) downgrade
I think Krugman essentially has it right about the apparent lack of bond-market excitement over a possible US debt repayment event (which might arise if Congress refuses to authorise a higher debt ceiling). To paraphrase him: why should the markets worry when it has been made crystal clear that the Fed is capable and willing to […]