Typing this on the road from my crackberry – let’s see how this goes (haven’t tried it before).
I remember krugman criticizing greenspan in 04 for starting to raise rates TOO SOON. By that time the fed’s prolonged period of super low rates had already caused massive inflation in home prices but krugman was begging for more. The point being that his track record for predicting (or even identifying) the inflationary effects of loose fed policy is poor.
As for his article, its the usual inflation risk-denier stuff and there’s nothing in there that isn’t addressed in my “us govt will not choose deflation” article linked to at the upper right, with the “us not going down japans road” article going deeper into why his japan comparison is erroneous (using data, as opposed to krugman’s generalizations which imply, wrongly, that japan’s policy response was similar to ours).
