Saturday, July 31, 2010

Krugman wants to talk deflationary spirals

Like this one

How else do we deflate?   If Krugman thinks we can go through a restructuring without a deflation, then he is wrong.  When the distribution network for goods needs an adjustment, the way we do it is to find the maximum subgraph, go back to that point, and then we what grows from there.  If Krugman does not like the way mammals do this, then become a lizard, no problem.

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