Krugman has some terrifying musings:

Third -- and I fear that this is going to be a major issue in the future -- it’s important to take account of downward rigidity so as not to get fooled into accepting a persistently depressed economy as normal. Picture America in, oh, 2014: unemployment is still around 9 percent, prices are falling about 1 percent a year. Many economists might look at that situation and say, well, deflation is stable, not accelerating, so we must be at the natural rate of unemployment -- move along, folks, nothing to see here.

So it’s time to start focusing on downward rigidity and what it implies. After all, all indications are that we’re going to be dealing with a depressed economy for a long time to come.

Does he really believe that in 2014 unemployment will still be around 9 percent with prices falling at 1 percent a year?