The Return of Depressing economics

If you take Krugman's book and any and all other articles he has written on the crises in Japan, anyone can tell that he thinks Japan needs inflation. According to him, Japan needs to print sufficient money to ensure many years of rising prices (i.e. rising by more than 3%). Given that nominal interest rates cannot fall below zero, inflation is the only way to generate the negative real interest rates that are needed to …

…we now have running an uncontrolled experiment of Krugman''s proposal. We will soon see if Krugman's theory is correct and if the Japanese government prevails and gets their economy where the GDP was recently $33,000. This is a nation that is waiting to prosper and is only scared to speculate in their own market. If the Japanese government succeeds in the monetary inflation, then their economy will soon see the end of "depression economics." ------------------------------------------------------------------------ **Bibliography**