Aug 31, 2013

This is funny and why Asia recovered relatively quickly in '98 and Europe has not

Krugman highlights that the NYT blog Economix is the 2nd most influential econ blog in the world - then when you click on the link you discover who is the most.... shocker, huh?!?

Krugman also explains how Asia recovered quicker from the Asian crisis in the late '90's because they had their own currencies while Europe is taking a lot longer to recover. This is because Europe is tied to one common currency so the poorer countries have less flexibility to make their economies more competitive.  This is also a good segue way to Krug's other recent post on how he was a Euro-skeptic from the inception in the early '90's.

Aug 21, 2013

Healthcare and Yellen

Krugman is having a field day bashing the Republicans over healthcare. He firmly believes it will be a raging success and hurt Republicans for years since they did not support it and are actively fighting its implementation. He is especially angry that they have the nerve to try and prevent its implementation through not funding parts of it - he wonders how this can happen since it passed Congress and was signed into law. His other main point is that of course some people's cost will go up since you have to cover and get premiums from healthy, young people - that is the only way to make full coverage of population work. He feels it is disingenuous of Republicans to criticize this if they really believe people have a right to some form of health insurance.

In the drama over the new Federal Reserve chair - Krugman is a big supporter of Janet Yellen over Lawrence Summers. Krugman explains that Yellen has been right numerous times over the past decade in terms of economic insight and forecasting. Summers on the other side has been too cautious and was a key architect in the Obama administration's stimulus package in 2009 that was too small and weak. He faults Obama for pushing Summers saying in essence he just wants a buddy in the position. Of course this is a big problem since the Fed chair should be independent.