I can’t stand Krugman on politics, but I have tremendous respect for him as an economist. I recommend this video over at Bloomberg (if you know how to embed these in a WordPress blog, please put the instructions into the comments section).
I am sure Krugman has insight into the various global policy making institutions, so I figure it’s worth knowing that he:
1/ expects further easing from the Fed;
2/ expects further easing from the BoE;
3/ expects nothing more from the ECB;
4/ expects that none of Obama’s jobs plan will get through the House; and
5/ thinks that there is mild risk of EUR breakup – likely following a banking crisis (as occurred in Argentina)
He also reckons that that there is a ~50% chance of another recession – which i think is way too high (mostly because the things that usually recess never bounced back).
I do, however, agree with his assessment that we are headed into a period of slow growth, and that unemployment rates (US, EU, UK) are likely to be higher in a year’s time than they are just now.