Monday, April 21, 2014

Krugman on Sweden's Sadomoneratists

This is depressing, in more than one meaning of the word. Krugman lays it out.

At least as I define it, sadomonetarism is an attitude, common among monetary officials and commentators, that involves a visceral dislike for low interest rates and easy money, even when unemployment is high and inflation is low. You find many sadomonetarists at international organizations; in the United States they tend to dwell on Wall Street or in right-leaning economics departments. They don’t, I’m happy to say, exert much influence at the Federal Reserve — but they do constantly harass the Fed, demanding that it stop its efforts to boost employment.

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