Cop Car, Blinky Lights

In front of the house. They arrested some woman. Through the open window I could hear her talking in a very gravelly voice, before they put her in the car and drove off. It's just shy of 60 degrees fondly Fahrenheits here in Our Fair Cities at 4:40 am on a Wednesday morning.

Krugman -- Always the optimist

Dismal Thoughts
To be an economist of my stripe these days — basically a Keynes-via-Hicks type, who concluded as soon as Lehman fell that we were in a classic liquidity trap with all that implied — is a bittersweet experience, with the bitter vastly greater than the sweet.

The good news, such as it is, is that our underlying model has performed very well. Interest rates have stayed low despite large government borrowing; crowding out has been totally absent; huge increases in the monetary base have not been highly inflationary.

The bad news is that policy makers almost everywhere have failed dismally, and seem determined not to take on board the lessons of experience, either historical or what we’ve learned the past few years. More