Krugman on Quantatative Easing: the Sequel:

So I didn’t and don’t think that we can count on monetary policy to do the job; blithely declaring that the Fed should target nominal GDP misses the difficulties. And that means we need fiscal policy.

Of course, at this point, with the loss of political will, it looks as if we’re going to see an attempt to do the trick with quantitative easing alone. I hope it works, but I wouldn’t bet on it.

On China, Krugman notes Martin Wolf agrees with him but favors Daniel Gros's reciprocity on capital controls. Krugman doesn't see how you could do capital controls on one country.

I'd support trying Gros's idea - which is what China is doing to us - Krugman's tariffs and the Eichengreen/Yglesias combo devaluations. Try all three and once we're at full employment, back off again.