Krugman Admits the Federal Reserve Causes Bubbles

Following the Fed's announcement that it will reduce its purchases of U.S. bonds and mortgage-backed securities by $10 billion, down to $75 billion per month, Paul Krugman implicitly admitted that the Federal Reserve causes bubbles. He commented on the "worry" that the Fed's inflationary policy of quantitative easing (QE, i.e., money printing) "is feeding speculative bubbles" by replying that "surely that’s a feature of cheap money in general".

The post Krugman Admits the Federal Reserve Cause...