Paul Krugman Warns ECB President Mario Draghi And His Policy Makers Are Wrong!

In a recent article published on Bloomberg, it Paul Krugman is reported to have warned ECB President Mario Draghi and his policy makers should raise the inflation targets that they have clung to since 1990s. At 2% these inflation targets are too low and increase the risk that ECB will run the risk of of not giving enough room to cut the interest rates. “The intense resistance of central bankers to regime change even after more than five years at the zero lower bound shows that the kind of policy stasis that afflicted Japan for almost two decades is a more or less universal phenomenon,” Krugman said in a paper delivered to Draghi and other officials in Sintra, Portugal. You can read the rest of the article here.