Reddit Reddit reviews The Return of Depression Economics

We found 4 Reddit comments about The Return of Depression Economics. Here are the top ones, ranked by their Reddit score.

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The Return of Depression Economics
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4 Reddit comments about The Return of Depression Economics:

u/coolwithit · 26 pointsr/Economics

> Take monetary policy for example, Krugman continually rejects the argument for monetary stimulus to increase aggregate demand in order to push a political agenda.

No, he doesn't. He has actually written extensively about this.

>So what can policy do?
>
>1. It can try to achieve negative real interest rates by creating expectations of inflation. That’s actually the more or less free-market solution. Many years ago I tried to explain this by considering a hypothetical world of perfectly flexible prices and a fixed money supply. How would such a world deal with the situation shown above? The answer is, prices would plunge far enough that people would expect them to rise again in the future, generating the expected inflation we need. Since prices aren’t perfectly flexible, and anyway the existence of nominal debt makes massive deflation a really bad idea, the preferred alternative is simply to create expectations of inflation looking forward.
>
> 2. Alternatively, governments can step in and spend while the private sector won’t.
>
>3. Finally, central banks can try to circumvent the zero lower bound by buying long-term debt. The point here is that we only have zero rates at the short end, and it’s possible, though not certain, that you can get at least some traction by buying those longer-term bonds.

http://krugman.blogs.nytimes.com/2010/11/06/bernanke-and-the-shibboleths/

Expectations are hard to move and QE is not getting enough traction. That's why he advocates fiscal stimulus.

Also:

http://web.mit.edu/krugman/www/jpage.html

http://www.amazon.com/Return-Depression-Economics-Paul-Krugman/dp/0393320367

u/[deleted] · 2 pointsr/NeutralPolitics

Paul Krugman. I went to him after my AP Macro class trying to understand the Japanese debt problem, via. Return of Depression Economics and ended up becoming a solid Keynesian. Krugman pointed me to Rawls, which was reinforced by a teacher, and that is how I now view a just state.

u/absinthe718 · 1 pointr/2012Elections

> Honestly, I'm not sure. But the ideas brought forth in the Peter Schiff video seem reasonable to me. The only thing that seems debatable is the timing.

The same is said for rapture predictions.

For a counter argument, please consider Krugman's The Return of Depression Economics

It's a quick read.

u/ewest · 1 pointr/explainlikeimfive

Read The Return of Depression Economics by Paul Krugman. One of the best and most entertaining economics reads I've ever picked up. Really jumpstarted my interest in economics, and gave me an excellent historical education on the recent history of economics.