Paul Krugman has stumbled onto the solution to all our economic woes. We need us one of them tsunamis, twice again as wet as the one that hit Japan!
Japan, which is spending heavily for post-tsunami reconstruction, is growing quite fast, while Italy, which is imposing austerity measures, is shrinking almost equally fast. There seems to be some kind of lesson here about macroeconomics, but I can’t quite put my finger on it.
Suggesting that deadly disasters — including “man-caused” ones like 9/11 — are good for the economy is a habit Krugman can’t seem to quit.