As I said in my piece, “Green Shoots” or “Yellow Weeds” the financial sector has stabilized and is moving again. However, this has not yet translated into recovery in output and employment. I agree that this is no time to ease up on the stimulus program. But here in Europe this is the topic of the day, and they have not even seen the financial recovery we have in the USA.

Krugman may say stay with the stimulus program but at the same time he is warning us not to return to our¨”excessive consumption” pattern of the last decade. He comes out as being on both sides of the fence, maybe that is how you get a Nobel Prize, you are never wrong since you have covered both sides.