Babysitting Krugman

As the economy continues to plod along, many voices are clamoring for even more simulative money-printing, as if the more-than-tripling of the monetary base in the last five years was simply a bagatelle, and even as the Federal Reserve continues creating $85 billion a month, a policy to be continued indefinitely until we see significant economic improvement. As a Nobel Laureate and preeminent economist, New York Times columnist Paul Krugman receives a lot of attention for the economic proposals he advocates. He often tries to dispel right-of-center concerns involving the danger and inefficacy of today's loose monetary policy by telling an economic parable, in which many young couples with small children decide to band together and form a babysitting co-op that will provide each other with childcare services. A number of coupons are printed and issued equally to every couple, each entitling the bearer to one half-hour of babysitting time from another couple. After a while, many parents...(Read Full Article)