Krugman: Please Don’t Taper

Tuesday, 17 Sep 2013 08:26 AM

By Michael Kling

Nobel Prize-winning economist Paul Krugman is sending a desperate plea to the Federal Reserve as it considers shrinking its quantitative easing stimulus:”Please don’t do it,” Krugman writes in his New York Times column.The risks of tapering its stimulus too soon far outweigh the risks of continuing them, he contends.

Tapering too quickly, he warns, “could damage an already weak recovery, causing hundreds of billions if not trillions of dollars in economic damage, leaving hundreds of thousands if not millions of additional workers without jobs and inflicting long-term damage as more and more of the unemployed are perceived as unemployable.”

Now is not a good time to be even talking about monetary tightening, he argues.

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