Using @AtlantaFed’s Deflation Probabilities to Make Two Snarky Comments About Liberals by Mike Konczal (Rortybomb)

It looks like QE2 was a reflection of deflation expectation going up in the Spring of 2010 and that it succeed as deflation expectations came back down. This isn't airtight proof but it's suggestive. Good catch by Konczal about something of which I wasn't aware.

CBO Says Weak Demand Is Causing High Unemployment by Yglesias

Doug Elmendorf, on the CBOBlog: "Slack demand for goods and services (that is, slack aggregate demand) is the primary reason for the persistently high levels of unemployment and long-term unemployment observed today, in CBO’s judgment."

This is correct. Strangely the subsequent discussion completely neglects monetary policy as relevant to demand. The Federal Reserve is supposed to conduct monetary policy independently, but that doesn't mean that other arms of government are supposed to pretend it's not there.

Playboy (!) interview with Krugman