Jesse's Café Américain Fri 2009-11-20 08:01 EST
Krugman Declares "Mission Accomplished," Maginot Line Completed
...the key to coming out of a crisis permanently is not how quickly and dramatically one inflates the money supply, or even how long one maintains it, and how many stimulus programs one can create, but rather how quickly and capably a country can reform, can change the underlying structures that caused the problem in the first place. Japan has been doing it slowly because of its embedded kereitsu structure and government bureaucracy supported by a de facto one party system under the LDP. In the 1930's the impetus for reform was overturned by a strict constructionist Supreme Court and an obstructionist Republican Congress. The story of our time might be the perils of regulatory and political capture.
Jesse's Café Américain; Krugman declared; Maginot Line Completed; mission accomplished.