…unsustainable situations usually go on longer than most economists think possible. But they always end, and when they do, it’s often painful.
The quote, above, has been around for a while but now seems like a good time to mention it. Krugman has long been a critic of the Bush Administration’s economic policies. And this morning, Krugman was announced winner of the 2008 Nobel Prize in Economics. In his comments, he briefly addressed the current financial crisis:
“Praising world leaders’ efforts to staunch the financial bleeding, he added: “I’m slightly less terrified today than I was on Friday.” World policy makers met at the weekend, after a black Friday on financial markets, to agree radical measures to rescue banks, revive liquidity and tackle the risk of a global recession.