Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
The first comment predictably says "OMG Weimar".
I believe the answer to this is "Zero Lower Bound"?
(Or "Liquidity Trap".)

Here's Krugman

From the very beginning of the Lesser Depression, the central principle for understanding macroeconomic policy has been that everything is different when you're in a liquidity trap. In particular, the whole case for fiscal stimulus and against austerity rests on the proposition that with interest rates up against the zero lower bound, the central bank can neither achieve full employment on its own nor offset the contractionary effect of spending cuts or tax hikes.
[...] clearly, there's something about the notion that the rules for policy depend on the situation that some economists just don't want to understand.

by Number 6 on Fri Feb 8th, 2013 at 06:38:05 AM EST
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