Paul Krugman: The Feckless Fed

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At www.nytimes.com

The Fed was supposed to be intellectually prepared for this situation. Mr. Bernanke has thought long and hard about how to avoid a Japanese-style economic trap, and the Fed's researchers have been obsessed for years with the same question. But here we are, visibly sliding toward deflation -- and the Fed is standing pat.

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At www.nytimes.com

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