These are after the fact justifications.
He does indeed say that lowering rates to inflate asset prices would be our easiest way out of the situation.
He goes back only to say that it is unlikely that we will cut rates enough so it porbably won't work (ie this will fail because our attempt to create bubbles will be too half assed to work.)
He's pretty clearly serious that lowering rates to encourage investment is our ticket out of the problem.
I'm curious, why is my version an after the fact justification, but yours isn't?
Re:Paul Krugman: The austerity delusion
by AnimalMuppet on Thursday April 30, 2015 @06:10PM
(#9467974)
I believe that amn89 was saying that Krugman's version was an after the fact justification.
http://www.nytimes.com/2002/08/02/opinion/dubya-s-double-dip...
The theme of that article seems to be, "we're screwed, and here's why." In that context, the quote in question seems to be saying, "the only way out would be to create a housing bubble, that's how screwed we are."
I think it's ironic to complain about "treated as the word of god" in a comments section absolutely flooded with criticism of him.
I wish we could discuss the ideas rather than the author, in any case.