I think the thesis of the Monetary History has just taken a hit.
However, Anna Schwartz, one of the authors of the Monetary History tome has already stated publicly that she thinks that Bernanke is fighting the "last war" (i.e. the Great Depression)
One of my least favorite things about Krugman is how he mixes in unsupported political demagoguery with good economic arguments, and doesn't bother to distinguish between the two. He gives you a few solid facts and arguments and then skips to his preferred policies, while skipping many steps in between, as if to say "if you believe these good points, then you must agree with my conclusion", even though that is not the case.
I think the thesis of the Monetary History has just taken a hit.
However, Anna Schwartz, one of the authors of the Monetary History tome has already stated publicly that she thinks that Bernanke is fighting the "last war" (i.e. the Great Depression)
http://www.dailypaul.com/node/69560