Today, the always partisan Paul Krugman discussed the current attitudes of Federal Reserve Regional Presidents. He disagrees with them that interest rates should be hiked sooner rather than later. In response to Plosser's argument of early rate hikes, he says the following:
I don’t know what analysis lies behind these itchy trigger fingers. But it probably isn’t about analysis, anyway — it’s about mentality, the sense that central banks are supposed to act tough, not provide easy credit.
So the person who blames almost the entire recession of Greenspan's policy of easy credit is all of a sudden arguing that easy credit should be available for the next several years? It is interesting to note that Krugman's economic attitude changed on January 20, 2009. Why is that day significant again?
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