To Krugman, the increasing ideological blindness of German politicians can only be explained by their belief that "hard times must be the necessary punishment for earlier excesses." Krugman overlooks that the hard times and excesses do not concern the same people.
The Misery of Economic Policy (tags)
The military Keynesianism since Reagan guided the streams of surplus global money-capital into the US as a "safe harbor." The orgies of deregulation and privatization cleared the way for the "assets inflation" of the financial bubble economy.
Fear of the Great Depression (tags)
The acute danger exists of a self-reinforcing downward spiral from deflation, increasing debts and new problems in the financial sector..Degenerate banks must be closed by the state in a controlled way. Politics must try to reduce the uncertainties of consumers.