Krugman is clearly not advocating creating a housing bubble (hint, he is calling it a bubble…you don’t usually do that when you want to advocate something). What he is suggesting, that the only way Greenspan’s optimism in the economy post the dot com crash would be justified is if Greenspan was willing to replace one bubble with another.
And that is exactly what Greenspan did. However, the entire tone of Lrugman’s article is pessimistic because he clearly believes this is not the right approach.
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