Economists Paul Krugman is out with his latest at the New York Times
Krugman says that the best policies to improve the economy would be fiscal stimulus, higher inflation targets and currency devaluation but those have been ruled out. Instead, markets are stuck with 'second-best' policies.
He makes an interesting point in saying that he only defends QE because it was the 'best' response given the political climate. Likewise with Greece, where it only struck the best deal it could in an deeply-flawed system.
He asks:
"Do people like me spend too much time being limited by what is presumed to be politically practical? Should we devote more time to trying to widen the range of options, to pointing out that we really would be much better off if we threw off the fetters of conventional deficit fears, the 2 percent inflation target, and the extremely ill-advised euro project?"
