Quote of the Day: May 8, 2012
Mark Thoma on the Fed: Doesn't Anybody Know How to Play This Game?

Duncan Black Gets Super-Shrill as He Reads Trichet

Duncan Black

Eschaton: Double Dose Of Krgthulu: The maddening thing about this isn't simply that people were wrong, it's that they won't admit they were wrong. Or if they do, they were wrong for all the right reasons and the people who were right were right for the wrong reasons. At 20% unemployment they'll be screaming "ALL IS WELL." And they'll continue to fail upwards. Also, too, Krugman is a smelly hippie.

Paul Krugman:

Feel the Confidence: Jean-Claude Trichet, 2010:

As regards the economy, the idea that austerity measures could trigger stagnation is incorrect.

Incorrect?

Yes. In fact, in these circumstances, everything that helps to increase the confidence of households, firms and investors in the sustainability of public finances is good for the consolidation of growth and job creation. I firmly believe that in the current circumstances confidence-inspiring policies will foster and not hamper economic recovery, because confidence is the key factor today.

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