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can we drum him out of the “public intellectual” club now?

Paul Krugman on Friday, August 2, 2002:

http://www.nytimes.com/2002/08/02/opinio…

The basic point is that the recession of 2001 wasn’t a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble

OK, he did that, Paul.

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One Response to “can we drum him out of the “public intellectual” club now?”

  1. a cloaking device Says:
    June 17th, 2009 at 1:20 pm

    I’m sorry, I read that column. It wasn’t clear to me he was ADVOCATING doing such a thing, but rather saying “If Greenspan’s going to save this in a way consistent with his past behavior, he’ll have to do something crazy like create a housing bubble to take the place of the recently collapsed stock bubble.”

    I’d be curious to read the whole statement made by Mr. McCulley, too. That would be good to know, in interpreting PK.