Get ready for a Krugman/Mankiw spat on a day typically reserved for goodwill among men and women. Posted at 8 am on Christmas Eve:
I often disagree with Paul Krugman, but I usually understand him. Lately, however, I have been puzzled about his view of the bond market. ...
Has Paul changed his mind since 2003 about how the bond market works? Or are circumstances different now? If anything, I would have thought that the fiscal situation is more dire now and so the logic from 2003 would apply with more force. I am puzzled.
I predict that Krugman will say, if he hasn't already, that conditions have changed (because this issue has come up before) ... and then a few nasty things about Mankiw. But, maybe I should be more charitable?
