So minting the coin would be undignified, but so what? At the same time, it would be economically harmless — and would both avoid catastrophic economic developments and help head off government by blackmail.
What we all hope, of course, is that the prospect of the coin or some equivalent strategy will simply take the debt ceiling off the table. But if not, mint the darn coin.The New York Times | Opinion
Rage Against the Coin
Paul Krugman | Professor of Economics, Princeton University
2 comments:
Tom,
This hit the Telegraph also via Cullen:
http://www.telegraph.co.uk/finance/financialcrisis/9784898/US-seriously-considering-1-trillion-coin-to-pay-off-debt.html
Here's Cullen: "Mr Roche, founder of Orcam Financial Group and blogger at Pragmatic Capitalism, said the idea was being taken "somewhat seriously" in Washington."
Glad to see Cullen is speaking for the Administration ;)
Id rather have Cullen speaking for the admin over Geithner/Lew or any of the other Peterson/Rubinite idiots any day...
rsp,
Good beginning, strong finish, but a good deal of nonsense in the middle from Krugman about his pet "the liquidity trap."
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