Krugman: Why the U.S. Economy Could Use Higher Inflation
Posted on May 02, 2012 at 16:04 PM EDT
Nobel Prize winning economist Paul Krugman has some critical words for how Team Bernanke is handling the U.S. economy. The Princeton University professor suggested on Bloomberg Television's "Street Smart " program Monday that U.S. Federal Reserve policy makers, under the guidance of Chairman Ben Bernanke, are "reckless" for refusing to pursue inflation. Krugman argues that higher inflation could lower the staggering U.S. employment rate that has lingered for more than four years. "The reckless thing is to allow mass unemployment to continue," Krugman said Monday. "We have had a massive failure of our political system that has come to accept that 8% unemployment is the new normal and there is nothing that can be done. We're in a low-key version of the Great Depression." To continue reading, please click here...
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