Krugman discussed a central bank which could credibly promise to be irresponsible in the future when the economy is out of the liquidity trap.
Krugman has the central banking system which reliably allows government default once a generation. He wants default, default means permanent, debt is temporary. He likes to pretend the names are different so it sounds like some magic.
We will default, millennials are way overburdened by a generation of rising federal debt. And the sandbox can handle government default quite nicely. In our living memory we done it twice and are pretty good at it.
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