Paul Krugman and James Bullard

Mr. Krugman, with a colleague 

Taken from The New York Observer

The colleague is Tom Friedman; not identified in the whole article. How I hate to have Nobel Prize winners as friends; Mr. Friedman must be thinking.

I bring Paul because of something else though (you are welcome Tom); I was reading the president of the Federal Reserve Bank of St. Louis, James Bullard talking just like Paul, in the NYT.

Sure enough, searching the Web, I found the piece where the picture is.

Maybe I should name this piece everybody wants to be friends of Paul. After the performance at the Colbert Report, I am more and more amazed at Paul.

The issue now is Deflation.

Krugman keeps warning us that the Japanese blew it. All through the 90s they did not develop. I remember the days that every major city of the world had Japanese tourists, Mexico was not spared. They bought everything, even Cantinflas movies. All of a sudden they disappeared. I guess that is Deflation and then it is a good thing.

No I am kidding. Deflation is an economic disease in which the economy stops, because low prices discourage producers, and then prices go even lower, in a vicious cycle. 

I only took one Economics class, this seems to brake the only law I understood. Supply and Demand; I guess one has to go to Princeton to take classes with Dr. Krugman to understand why the world behaves in this weird way.

In any case the Obama Administration is listening to Krugman, like I have been urging them to do since they took office. I will try to catch some Washington D.C. visitor with my spiffy feedjit widget.