tag:blogger.com,1999:blog-6276561747841568697.post6846883236914307946..comments2024-03-27T05:23:48.855-04:00Comments on Krugman-in-Wonderland: Krugman and his "Bubblicious" AdviceWilliam L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6276561747841568697.post-70318651391452454422010-04-06T14:00:49.502-04:002010-04-06T14:00:49.502-04:00I was thinking about that earlier and I am going t...I was thinking about that earlier and I am going to do another post on that particular subject. Indeed, if Krugman believes that (1) the Fed can hold down interest rates but (2) government regulations will stop the malinvestments (Oh, I forgot, Krugman doesn't believe in malinvestments), he is mistaken.William L. Andersonhttps://www.blogger.com/profile/01802990642236807359noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-13881074636715270532010-04-06T08:11:36.985-04:002010-04-06T08:11:36.985-04:00Keeping interest rates artificially low while regu...Keeping interest rates artificially low while regulating the "use" of the money is like doling out heroin but hoping to control its use and at the same time complaining that people don't pay enough attention to what they eat. What Keynesians don't seem to get is that interest rates are prices just as other prices and who manipulates the prices of tyres, bread or houses inevitably gets the same distortions as anywhere else only that interest rates due to the general function of money as a unit of reckoning have more generally detrimental effects than manipulated prices of any other "good". I have yet to see the logic of why interest is different.Anonymousnoreply@blogger.com