Krugman Nails It

He hasn't let the Nobel go to his head.

Read his Op-Ed.

He is saying that there is not much that the Fed can do by lowering interest rates, they are already at 1%, after all.

He is saying that they have shot their monetary wad, the classic phrase is "pushing on a string", and that Congress needs to go with fiscal stimulus, meaning that Congress needs spend money on things like infrastructure, etc.

Think New Deal and the WPA.

Go read the shrill one.

Ph'nglui mglw'nafh Krugman R'lyeh wagn'nagl fhtagn!