Krugman writes about how sticky prices are the prices to worry about, not volatile price.

He blogs about it here too.

Greg Ip on Sebastian Mallaby - that great fawner of hedge fund managers:

Like Mr Mallaby I regret the retreat from financial globalisation, but if it substitutes for naked protectionism, I can live with it. One thing other countries should not do is ask America to leave unused one of the few effective policy tools it has left to stimulate the domestic economy. The world needs higher unemployment and deflation in America like a hole in the head.

(via DeLong)

I was talked into seeing the new Clint Eastwood/Matt Damon movie Hereafter* even though communing with the dead isn't my cup of tea. (However I do love the Mexican holiday Day of the Dead which sounds like a zombie horror flick**) I do like Eastwood and Damon however and was willing to give it a go even if burblings from the beyond bore me.

Damon's character is psychic and can communicate with people's dead loved ones, but it is upsetting for him. To calm himself down at night he listens to audio recordings of Charles Dickens' works, which I thought was interesting. There can be something soothing to an articulate old-timey British accent for an American for some reason.

The video is a recording of the new Chicago-based band the Secret Colours whose influences are Blur, The Jesus and Mary Chain, Stone Roses, Charlatans UK and the '67 London UFO scene. I'm looking forward to seeing them in concert.

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* Saddest movie ever made is Atom Egoyan's The Sweet Hereafter. I like to give "hippie peaceniks" a hard time but this scene about hippies is great.
**Maybe because there is one. AMC's new program The Walking Dead is pretty good zombie fun.

Krugman versus PIMCO's El-Erian