Worthwhile Krugman

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.