FT Alphaville » Take that, Niall — Krugman was right all along
Even if that assessment springs from lips of Paul Krugman himself, we have to say the evidence increasingly seems to confirm it.
Krugman’s point was always that inflationistas, aka austerity enthusiasts — such as noted nemesis Professor Niall Ferguson — neglected the importance of “liquidity preference” when considering government deficits and stimulus spending plans.
After all, it’s all very well for the Fed to set a target rate, but it’s quite another for policymakers to implement it.
And herein lies the problem.
via FT Alphaville » Take that, Niall — Krugman was right all along.