In today’s NYTIMES, Paul Krugman has an interesting op-ed
titled ‘Rock Bottom Economics’. In his op-ed, Krugman states that at
the zero lower bound:
“Government spending
doesn’t compete with private investment — it actually promotes business
spending. Central bankers, who normally cultivate an image as stern
inflation-fighters, need to do the exact opposite, convincing markets and
investors that they will push inflation up.”
Article Link:
http://www.nytimes.com/2014/11/24/opinion/paul-krugman-the-inflation-and-rising-interest-rates-that-never-showed-up.html
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For an alternate perspective, read the transcript of a recent speech by Jens
Weidmann (President of the Deutsche Bundesbank)
http://www.bundesbank.de/Redaktion/EN/Reden/2014/2014_11_24_weidmann.html