If you think you can avoid the government from setting monetary policy, you're living in the world that was 150 years ago.
They can't keep up with the inflation or the devaluation of the currency." Krugman's response: "I'm not a defender of the economic policies of the Emperor Diocletion, let's make that clear." "I'm a defender of the economic policies that we followed after World War II that produced the best generation of economic growth this country has experienced. Big government liberals wanted to have job programs. They don't have a good record - they've ruined 98% of the value of the currency since 1913. Why should people get 1% for their money for savings in the banks get it for practically free?
We had a set of policies that provided mild inflation, there was effective government regulation of the financial system so it didn't go wild…We had fiscal policy that stimulated the economy when it was needed. Why did the Federal Reserve bail out the rich and not give the money to the mortgage holders?
Depressions are a bad thing for capitalism and it’s the role of the government to make sure they don't happen, or if they do happen, they don't last too long." Congressman Ron Paul on Krugman's idea that inflation is necessary to stimulate the economy: "You're stealing value from people who save money.
If you have a 2% or 10%, the value of the currency is lost.
But, no, governments can debase the currency and injure a lot of people and cause the business cycle and cause inflation and cause unemployment and get off scot-free." Krugman: "I have been pretty harsh on Ben Bernanke, but fraud is not one of the things I would charge him with." Ron Paul: "You want him to print more money faster." Krugman: "Well, of course I do." Professor Krugman on how much higher we could go with debt as a ratio of GDP: "I don't have a fixed number.
But if it takes another 30 points to get us out of this depression, I'm willing to accept that.People today if they use gold and silver, you can go to jail." Krugman's response: "That's not my understanding of the law.But do you really think people use dollar bills because the federal government isn't allowing them to use other stuff?If the Federal Reserve commits fraud, they get nothing….If you had a private issue of money and you committed a fraud, you would go to jail.I want the market economy to be left as free as it can be, but there are limits.