In his NY Times column today, Paul Krugman lets himself go and calls for an outright “inflation solution.” The government, he says, does not have to worry about debt, since it can print as much money as it wants and investors apparently never will change any of their plans or expectations. Indeed, he writes that more inflation will encourage more investment, since “expected inflation would discourage corporations and families from sitting on cash, while a weaker dollar would make our exports more competitive.”

I deal more with his column in my Krugman-in-Wonderland blog. By the way, it is a two-for-one special as Warren Buffett in another NYT op-ed makes the amazing claim that tax rates have no effect upon investment decisions.