Tuesday, 16 July 2013

Krugman Vs Noah Smith on Japan & a Liquidity Trap

Exciting times.

Noah Smith wrote about Japan here.

This brought out Paul Krugman to explain the consequences of a wage-price-flexibility-in-a-liquidity-trap-again-again-again

Noah Smith of course then replied. Check out the comments in particular.

I feel this debate will continue a while yet and if so I will update but this shows the blogosphere at its best.
(Simon Wren-Lewis has been the prime person behind recent debates)

Here is an important topic and there is a good and robust discussion about the subject.

I like both these writers however on this topic I think Kruggers has the advantage.

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