Can Mr. Bernanke promise to be irresponsible?

In a famous series of notes ten years ago, Paul Krugman argued that Japan’s way out of its lost decade was for the BOJ to credibly promise to be irresponsible and create persistent inflation expectations. In this note we make a stab at the current situation following the same approach. The definitive treatment, I am sure, will be delivered by Mr. Krugman himself some time in December. → Read More