Disclaimer: Any opinions expressed, potshots taken, or scientific views articulated are mine, and need not represent the opinions, potshots, or scientific views of the Federal Reserve Bank of St. Louis, or the Federal Reserve System.
Monday, October 10, 2011
Red-Letter Day: Krugman Gets Banking
Miracles happen. Krugman understands a Diamond-Dybvig model (more or less). We can quibble about the banking panic part, but he essentially gets it right, and applies it to thinking about the Murray Rothbard elements of Ron Paul's thinking. It's roughly consistent with #3 in this piece. There is hope.