Krugman: "We're now Japan"
From The New York Times:Gurk! ZIRP!
That’s Zero Interest Rate Policy - which is now, in the wake of this morning’s terrible employment report, inevitable. Yes, we’re Japan.
Add to this the news of a retail sales collapse, and we’re looking grim, grim, grim.
Monetary policy obviously isn’t enough. It’s time to raise Keynes: we need big fiscal stimulus, now now now.
Any way we can get current management at Treasury to take early retirement, and get the new guys in right away?
Add: The unemployment rate has now risen more than 2 percentage points from its pre-recession low. In 1990-1992 the unemployment rate rose 2.6 percentage points. Given what’s happening to retail sales, manufacturing, and so on, it’s now a certainty that unemployment has a lot further to rise. So the “worst recession in 25 years” thing is now baked in. The only question is whether we hit “worst slump since the Great Depression” territory.
That’s Zero Interest Rate Policy - which is now, in the wake of this morning’s terrible employment report, inevitable. Yes, we’re Japan.
Add to this the news of a retail sales collapse, and we’re looking grim, grim, grim.
Monetary policy obviously isn’t enough. It’s time to raise Keynes: we need big fiscal stimulus, now now now.
Any way we can get current management at Treasury to take early retirement, and get the new guys in right away?
Add: The unemployment rate has now risen more than 2 percentage points from its pre-recession low. In 1990-1992 the unemployment rate rose 2.6 percentage points. Given what’s happening to retail sales, manufacturing, and so on, it’s now a certainty that unemployment has a lot further to rise. So the “worst recession in 25 years” thing is now baked in. The only question is whether we hit “worst slump since the Great Depression” territory.