Nice that Paul Krugman Has Come Around to My Way of Thinking

I'm not saying that it was a result of anything that I did, but he is now arguing that our economy needs "modestly higher inflation," though he is talking more about problems in the Euro zone, as opposed to those in the US.

He does include the US though when he talks admiringly of a paper by Olivier Blanchard which notes that with higher inflation, a central bank has more room to cut rates before hitting the zero bound.

I would also note that he is still talking about rather modest inflation; a 4% instead of 2% target, while I would go for 6-8% for the next 3 years.