For European recovery higher inflation is needed and Ted Cruz is so crazy that no one dares be crazier!

Krugman continues to pound away at the need for greater inflation in the Euro zone. Interestingly enough the European Central bank actually cut their interest rate which of course Krugman applauded, since that should allow for greater inflation.

Krugman makes the point that higher inflation in the late-90's in southern Europe helped Germany recover from its doldrums. But now Germany is advocated low inflation which will not let southern Europe recover. Krugman calls out this hypocrisy - since Germany is now telling southern Europe to recovery through austerity which it never had to do.

On the political scene Krugman points out that no one wants to be seen at crazier than Ted Cruz. You would expect a wide range of viewpoints but it seems right wing stops at Ted Cruz.