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)
This is another excellent article by Nobel Prize winning, liberal, economist, Paul Krugman, in the NYT. It’s a MUST-READ, in my opinion. Check it out!
As I predicted a few days ago, attention would soon move from France to the Euro and then to Germany. See Krugman on on the Fall of France.
Krugman’s current article is actually more gentle than the title. It expands on recent arguments from Simon Wren-Lewis at Oxford and supports an excellent blog from the Economist today.
Let me restate my earlier conclusions.
So how should the World convince Angela Merkel‘s government to urgently support reflation across the Euro area? This needs to start in Germany, of course.
In my mind, we need to look to the fear of inflation and convince German people that the fear of deflation is much more serious than inflation. It is time for the mainstream media and the social media to convince German people that their deepest fear is really about deflation not inflation!
The alternative is probably the collapse of the Euro and that will bring even more pain – only decades later will historians call it “deflation”.
Thoughts?
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