Krugman Warns ECB Panel World’s Central Bankers Have It Wrong

Paul Krugman thinks Mario Draghi’s biggest thinkers have got it all wrong.

Speaking to a gathering of the European Central Bank's top researchers and policy makers, the Nobel Laureate said the ECB and other banks around the world need to raise the inflation targets they have clung to since the 1990s. At 2 percent, those goals are too low and increase the risk that central banks will run out of room to cut interest rates -- the so-called zero lower bound.