When does Krugman get angry? When someone believes that a cyclical economic downturn cannot be offset completely by central banking actions. Unfortunately for Krugman, Mr. Larry Summers actually congratulates the Federal Reserve for not letting the economic fallout to mimic the catastrophe of the Great Depression.
The actuality is that Summers merely believes that the United States is following the Japanese path. Maybe that is why he will not become the heir behind Ben Bernanke – because he is too much of a realist. It would not be the first time I saw someone lose a job because he/she did not blow enough smoke.
Well worth it to watch his speech:
