He's saying that if it wants to avoid recession in 2002 the Fed will have to replace one bubble with another. What's that got to do with a) Keynesianism and b) the current economic situation?
Paul Krugman is one of the prime movers of the new Keynsians, I believe.
And the current economic situation exists because we inflated a property bubble and it burst. Approximately $7trillion "vanished" when the housing bubble burst - the fallout from that is what we're currently dealing with.
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And the current economic situation exists because we inflated a property bubble and it burst. Approximately $7trillion "vanished" when the housing bubble burst - the fallout from that is what we're currently dealing with.
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