On 2011-12-30, at 6:08 PM, nathan tankus wrote:
> "If so, that'd be quite a reversal. Krugman had it out with Jamie
> Galbraith, who is very sympathetic to MMT, about the limits to deficit
> spending a while back, with Krugman in effect saying that the MMT
> position was reckless."
>
> Krugman would never admit to agreeing with them but his recent
> emphasis on the fact that "advanced" countries that have their own
> currency aren't having the debt crisis euro countries are is pretty
> Chartalist. as much as he would like to deny it, Krugman still cares
> about being treated as a very serious person.
A uniquely "Chartalist" position? Many economists and others across the political spectrum have stressed that the crisis is proving intractable for the PIIGS because they no longer have the power to devalue their own currency. The UK and Japan are more indebted than some of them, but they can print as many pounds and yen as they need to satisfy investors they won't default on their debt. Krugman is not being unorthodox here.