Get ready for a Krugman/Mankiw spat on a day typically reserved for goodwill among men and women. Posted at 8 am on Christmas Eve:
I often disagree with Paul Krugman, but I usually understand him. Lately, however, I have been puzzled about his view of the bond market. …
Has Paul changed his mind since 2003 about how the bond market works? Or are circumstances different now? If anything, I would have thought that the fiscal situation is more dire now and so the logic from 2003 would apply with more force. I am puzzled.
I predict that Krugman will say, if he hasn't already, that conditions have changed (because this issue has come up before) … and then a few nasty things about Mankiw. But, maybe I should be more charitable?
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