krugman is definitely a keynesian. adam smith advocated sound money, anti-inflation gold standard type of policy, very limited government, laissez-faire is the french said. a system of natural liberty, balanced budgets, free trade. krugman would be more or less a free trader, most economists are but not an advocate of balanced budgets especially during recessions. he is more of a keynesian in that respect, more than inflation is to, more than interventionist. i'm curious, did they give a reason why krugman? >> host: we were talking about milton friedman. i think it was he -- on chicago. said that he thought paul krugman would be more in the milton friedman camp than a libertarian. >> guest: we had lanny here to debate steve moore and lanny is an interesting person because his background different classical economics. john stuart mill is his favorite economist. he has written a biography -- friedman. you would think he would be in that camp but he has drifted. in santa monica or santa barbara, he teaches there. he has b

krugman wrong. >> but.do you say trump gets credit when in fact the credit would be trump has not destabilized the market, he hasn't done anything. he hasn't cut taxes, hasn't done tax reform. so people are saying, like, well smooth sailing, we can keep the obama policies? fantastic. >> you know what, he hasn't built a wall, yet we're watching immigration go down. it's all about, he is the wall. [ laughing ] >> halloween is coming. >> every day he comes out on television, the weatherman, he says, you know what it's going to be clear skies and sunny. every day it's pouring rain. yet he still has a job and everybody still listens to him. why the media hires people like krugman. once you're right in the mainstream media no one cares about your track record. they would rather you be left and wrong than right and right. they've been wrong about trump from the jump. they said wasn't going to win the primary. they said he was only in it to sell hats and boost his rating. they said he wasn't going to win the genera

economiste-winning krugman joinspaul us. professor krugman, thanks for joining us.ia: the prospects for tax reform during this administration? paul: it seems completely coherent and it seems like they have lost the thread on what they are trying to do. they have no way to accomplish anything that looks remotely neutrality, without raising taxes on a lot of middle-class people. it is a myth but i wouldn't be the first time that something that is a myth would make it through congress. joe: when you say it is completely incoherent, what do you mean by that? when you look at the policies, what stands out is not making any sense? paul: they keep on saying americans are the highest tax country in the world. that is a lie. we are just about the lowest taxed nation. but they keep on implying they are going to do a tax cut for middle income people. they keep on saying, we are responsible fiscally, and yet there is no way you can have what they really, really want, which is a huge tax cut for businesses and a pastor thing which would be a huge tax cut for people with high inc

and hayek in the 1950s and contemporary libertarian this are different offshoot. >> you think paul krugman would agree with you? >> guest: i think he might. he wrote a complementary review of friedman after friedman's death and pointed out friedman's contributions to economics were very significant and spoke highly of him, larry summers would be another individual who would come to mind. it is not like in the 1950s, 60s in 70s, you economist on the left advocating socialism, the government should run the economy. friedman in the 1950s thought society should be more equal than it was at that time and society at that time was more equal than it is now. friedman would be in the far left at this time. that is a reflection how much society has changed. with his they would themselves or not, nonetheless larry summers would be another example too. related to paul samuelson and other leading economists. the market is won by many respects. the issue isn't as it was in the 50s, 60s in 70s, should we have the market or socialism? market has won that argument. nobody in the world argues for command so

liberal view today is more upheld by economists who would be considered on the left such as paul krugman or joseph stiglitz, emanuel saz. i think they are the true successors of friedman and hayek in the 1950s and that the contemporary libertarians are really a different, a different offshoot. >> host: do you think paul krugman would agree with you? >> guest: i think that he very well might. he wrote a very complimentary review of friedman after friedman's death and pointed out that friedman's contributions in economics were very significant and spoke highly of him. larry summers would be another individual who would come to mind. and it's not like in the 1950s, '60s and '70s where economists on the left are advocating social im, that government -- socialism, that government should run the economy. in fact, friedman in the 1950s thought that society should be more equal than it was at that time, and society at that time was far more equal than it is now. friedman would be on the far left at this point in time, his views in the early 1950s. that's a reflection of how much society has chan

classical liberal would be adam smith and paul krugman is a keynesian. sova smith advocated for the gold standard type of policy. and with that natural liberty and free trade. but certainly not an advocate of balanced budgets in negative is it more of then interventionist so if they spoke did they give a reason why?. >> said professor said that progress and should be more in the of milton friedman camp. >> we had him here to debate more and as an interesting person his background is a classical economics but right team a biography and to live in santa barbara. bin did favor of a progressive tax and milton friedman and hayak were sceptical as i am. the id yet to transfer wealth from the private sector to the public sector and i cannot see how that would be beneficial. and the prism of how he sees things. so with no central planners. >> then a $20 bill with jackson on net $3 that is the cost of production but with a $100 bill the same thing it is $3 but $1 bill is $0.3. people reing of liberty bell , eight times they have been to freedom fest. obviously yo

paul krugman is nearly always wrong.right now and here he is, welcome back. i want to go through the things krugman has said and you tell us why he is wrong. you say his solutions are all wrong. tell me. >> krugman rights for the failing new york times as the president calls it and has a certain base of fan followers all of them on the left. 's answer to everything is raise taxes and let the government solve the problems by spending more of our hard-earned money. he never gives another solution, another thoughtful or creative solution to any of the problems he writes about. stuart: he also says -- krugman is nothing more than an establishment ventriloquist to. explain that. >> during the campaign he puppet at all the lines of hillary clinton. might as well of been on her payroll. he is very anti-trump and criticized not just his economic policies but everything else he has instigated. he detests anyone who is in enterprise, he doesn't think ceos know how to run the economy, only macroeconomists are qualified to do that a

here is "new york times" columnist paul krugman on election night. quote, it really does not look like president donald j. trump and markets are plunging. if the question is when markets recover, first-pass answer is never. melissa: huh. david: i went further. we're probably looking at a global recession with no end in sight. melissa: he was so close. david: he wasn't alone. "new york times" columnist had company. his colleague, andrew ross sorkin said just before the election. what happenses to the markets if donald trump wins. the conventional wisdom right off the bat, the stock market would fall precipitously. melissa: so close. david: our advisors are worth listening to. fox news contributor gary kaltbaum, from kaltbaum capital management. kevin kelly, recon capital. gary, why do these people have jobs? melissa: yeah. >> i don't recall in the last couple months paul krugman talking about his wonderful prediction. i remember it so, like it was yesterday, about the markets never coming back. look, it is all politics with these people. republican ba

krugman gave his thoughts on kevin warsh.ray while, the bedding -- for a while, the betting was for kevin warsh, former fed governor record and isk quite consistent. he has been wrong about everything. matt: still with us is dean yeah ates in -- is steen jakobsen saxo bank. the main question is not "are they want to raise rates?" the market expects them to. "are they going to do it two or three times next year?" but rather "who is want to be the next fed chair?" how important is the question and what is the answer? steen: it is more important what about thisrman does inflation debate which is still going on. it could be a woman. the 1970's. in krugman was educating himself. the model has not changed over that time. owndel by which their research is told to be inferior to all other predictive models of inflation. we have inflation targeting with a model that does not work in the fed. having said that, i doubt kevin chairman, be the next because the one thing going for him up for us is that his father-in-law is a very good frie

krugman was on bloomberg television yesterday and said this.he fed is trying to normalize and that version of normality went out the window 10 years ago. david: we are joined by senior u.s. economist at bloomberg intelligence. minutes come out. it's my sense that these are going to be kind of boring. what are you going to be looking for? there could be some interesting details. they revised the growth forecast. we might get some details as to why they did and that could be quite informative. at the same time we can hea from them why and how are they thinking about what isomething goes wrong. there was no market reaction after the release of the balance sheet unwind date. there could be. if something goes wrong what is their plan b, what they going to do? >they might give us a hint about that. david: it could be something. shery: what about inflation? >> inflation is a big deal. we heard from president kaplan. we heard from charlie evans this morning. they are all wondering what is happening with inflation. there's a lot of concern that it's not

stuart: go ahead. >> you mentioned paul krugman in there as well, and paul krugman is a pulitzer-winningso i like visual aids. i like to educate the audience. so i asked your producers to give me two tweets he sent out during the puerto rican crisis. hopefully they put the first one up here and the first one was about a cholera, here it is. outbreak in puerto rico. cholera in a u.s. territory, among u.s. citizens in the 21st heck of a job, trumpie. that was retweeted 33,000. that is going viral. couple hours later, after he is corrected by many people in social media and news reports he sends out this tweet. if we get that up real quick, you know, there really isn't cholera outbreak. instead something else like this. hopefully get the tweet up, it can make the point. that was only retweeted 600 times. .04% of the original. a lie can travel halfway around the world before the truth can get its pants on. talk about media. this is small example but it is typical. throw it out there see if it sticks. if you get called on it, actually correct it, no one sees the correction. stuart: senator du

but krugman is not just a bad economist, a lousy economist.e is also a hardened left-winger which is why he is a media darling. let's not forget, this is the man who accused the tea party of being responsible for the shooting of congresswoman gabby giffords. this is the man, says there was no shame in reaction of 9/11 and denounced bernard kerik and rudy giuliani and president for their response to 9/11. this is a man who has said that donald trump's election is illegitimate. he is a left-wing radical. the media loves him for that reason. he is an economist who is constantly wrong. hey, welcome to today's media. stuart: what was that number you gave us last time you were on the show? was it 92% network coverage of donald trump is negative? was it 92% or 95%, but it was way up there, i know? >> stuart, it is not changing. every month we look at this. last month it was at 91%. it has been 90% average this year. in the campaign it was 91% the only time donald trump got good press, relatively was in his first month during the honeymoon period it w

krugman, you listening? 1837, this guy is just a journalist. later that year he said "any person who has soberly observe the course of events for the past couple of years must have seen the state of things which now exists." i'm sure he had to endure people even then who said no one could have seen this one coming. leaders tellr wise us. he said you will see that the banks have been striving with all their might, each emulating the other, to force their money into circulation. they have used every art of jewelry and lou are meant to entice men and they excited speculation which they stimulate until an increase to a delirious fever and men in the epidemic frenzy of the hour wildly rush upon all sorts of desperate ventures. they dug canals were no commerce asked for the means of transportation. they open roads were no travelers decide to penetrate. they built cities where there were none to inhabit. i just read a bout this a gigantic center they were building in las vegas. they are abandoning the whole thing to talk about cities where there were

julia: coming up later today, a bloomberg exclusive with paul krugman.joins us on "what did you miss?" for a wide-ranging conversation. this is bloomberg. ♪ julia: this is "bloomberg markets." consumer staples are rising, but our stock of the hour is -- julie: let's start broadly and look at the consumer staples. the etf that tracks them is up .75% today, one of the better performing groups we are watching in today's session. a lot of that is thanks to walmart. that company coming up with comments that their e-commerce business will rise 40% in the next fiscal year in the u.s. other staples related companies rising. costco getting a lift along with walmart and target. hormel foods among the suppliers doing well. theexception to the gains, one exception that is notable today is procter & gamble. the drop was pretty sharp earlier this morning. that's when the results of the vote came in that showed that on was nottz of tri going to be appointed to procter & gamble's board. they say the vote is still close. it looks like it's not happening and that's why we

krugman has a terrible record but he continues to be cited by the "new york times."ia forgets once you put something on the internet it stays there. cnn had this headline september 20. nfl ratings are down again this season. is it time to panic yet? six days later he writes this headline. trump says nfl ratings are way down. that's not completely true. pallotta, you are making a lot of mistakes. this headline from the "huffington post." white athletes still standing for the anthem are standing for white supremacist. we invited the author on to "watters world." president obama who ran and governed as earn anti-wall street crusader has been raking in millions of dollars for speeches on wall street. you would think that would be a pretty big story. no. the networks completely ignored it. president trump unveiled his tax plan this week. >> we are hear in indiana to announce our framework to deliver historic tax relief to the american people. jesse: the tax plan affects he single tax paying american. but nbc spent three times more coverage on "will and grace" promos. you

it to be the first to bash him in a brand new way case in point the new york times columnist paul krugman he took to twitter to bash trump for a calera outbreak that started in puerto rico tweeting dramatically calera in the u.s. territory among u.s. citizens in the twenty first century have a job. truth be he actually calls them this venerated columnist this nobel prize winner and he actually spelled. to. the tweet was then retreated more than fourteen thousand times garnered over thirty two thousand likes even though he then tweeted six hours later the truth ok calera not good for. and conductive vitus yes lack of clean water situation worsening not improving makes it a risk but not certain and that's we only got reach we did a measly five hundred times with only a little over a thousand likes and it was also poorly punctuated and looked to be tweeted in some sort of rush or perhaps a flush of embarrassments from having tweeted some very scary very partisan very mean spirited and divisive fake news good job crew and some were quick to point out that even his correction which didn't get

he did not talk about the next fed chair but one person dead, paul krugman. -- one person did, paul krugman prediction markets were thinking that the most likely pick was kevin warsh, former fed governor. he does have a track record over the past decade and is quite consistent. he has been wrong about everything. alix: still with us, alessio de longis and gabriela santos. what does he really think? so he thinks he has been wrong about everything. what is your base case for the chair of the fed? -- first ofm opting all, i do not think it should matter that much. i will explain in a second. i have to believe it should not matter that much. if we are talking about a normalizing economy and the solid, established institution, it should not be from the purpose of markets and all of byt, it should not be driven an episode of this nature. fed,ing a few names of the no matter how important, i want to believe the institutional framework of the fed, of monetary policy has to dominate in the medium-term. will the markets react? yes. that equate to 10 or 20 basis points on 10 year treasuries in either

kevin warsh has a chance of getting it and pull krugman is coming from a particular place when he says he's wrong about everything. what would he be like as a fed chair? michael: i think he will be just fine. from whence he speaks because he's been wrong about lots of things, himself. worth has been worried about inflation and overspending on securities. overall, he was the honest fed governor ever appointed -- the youngest fed governor ever appointed. the market will take it all right, bonds will trade off because the bond market believes he's going to accelerate the unwinding of the portfolio. powell was that, mr. the author winner last night, is one who will probably get a thumbs up from the markets. mr. taylor is the only one -- he's the third name in the mix and he hasn't been mentioned recently. markets might have a bit of a problem with him. vonnie: he would almost certainly raise immediately. what will we hear about the balance sheet unwind today? the fence on is this. michael: we will hear "gradual" used on this set many times. ismatter who gets in there, not in anyone's inter

elizabeth: katrina, quickly before we go, election night when rachel maddow and paul krugman were sayingthe apocalypse in the market, citigroup and other groups said, yes, we could see rocky action, but people who listened to that and sold stocks, katrina, they would have missed out on a $5.3 trillion runup in the dow, rather, the -- [inaudible] since then. they've lost a lot of money because they listened to people like that election night, right, katrina? final point. >> that's absolutely right. and i think a lot of people are looking at this now. you're going to have those people that just want to hate this president. they're going to continue watching her. and then there are others that are going to realize that for a very long time she's been misleading a lot of the public on a lot of issues that's really going to hurt their pocketbook in the end, because this president has one priority, and that is putting americans first. and people are realizing that even if newsmakers aren't. elizabeth: we love having you on, thank you so much. >> great to be here. elizabeth: cops in miami, not

that you. 8:30g up at 3:30 eastern, we will speak with nobel prize-winning economist paul krugman on'd you miss." breaking news -- failing to we n a png board seat, they will take more time to determine the outcome. shares are falling right now. they are down 1.4%, this as we learn that nelson helps has failed to win the board seat he was actively looking for. i want to come back to that breaking news in a few moments. for the moment, this is bloomberg. ♪ vonnie: want to go back to the hasking news --nelson peltz lost a shareholder vote to gain a board seat at p&g. it is a little bit of a surprise. julie hyman has more on this and the stock reaction. julie: we are seeing the stock fall. you have continued headlines here -- the company says based on the preliminary vote count, all 11 of its directors were board.ed to the that is not nelson peltz of tryon partners. tryon says it will take more time to determine the outcome. procter & gamble says nelson peltz was not elected to the board. peltz, who owns a substantial portion of the company shares here, has pushed for reorganization, fo

. >> larry lindsay is challenging paul krugman and larry summers to a 60,000 bet over the gop tax plan$10,000 a piece on three predictions he says growth will be higher under trump than obama, income inequality will decline under trump and ordinary wages will climb. take a listen. >> no, this is not a lay-up bet in the ordinary sense of the word, it's a lay-up bet because the tax bill is a powerful bill as is deregulation that's why we'll have faster growth >> i'll certainly be the first to recognize that i was wrong if we pass this tax cut, which i don't think will happen, and it is shown to have increased the economy substantially, i will have -- then i will have been wrong. i wouldn't wait up >> i don't blame larry for turning down the bet any economist who studies these matters knows this will be a good bill for economic growth. >> this is a clear cut bet for these three criteria should summers and krugman take it >> i say they should not take it while clear cut in terms of what will be measured, there's no way to judge causality from a tax bill that comes out. we could be in a goo

fact, it was one of the few things i have seen from paul ryan -- >> this is a big moment where paul krugmanething that paul ryan -- that is a pretty high compliment. >> it has bipartisan support among tax experts. people were saying this is a good idea. and of course, it being the one thing i have seen from paul ryan that was not a terrible idea, it died instantly in the political arena and without that, without the border tax adjustment that is the piece of that, there is no way to make a significant cut in corporate tax rates that doesn't explode the deficit. >> the minutes of the moc >> -- fomc september meeting answered questions about the monetary policy, but further insight came from the one-on-one interviews we did with fed officials. let's start with manus cranny's conversation in zero with chicago fed president charles evans. i'm thinking it is going to take longer to get to 2% then many people. we might need a continued accommodative stance. from here on out, every rate increase will get closer to that line where we are not sure if it will lead to inflation moving up. and so, thos

holtz-eakin: [laughter] summers rainfall krugman into the ring as well. of the consequences of that for independent economic research with a value of the stature of independent economic research in washington, d.c.? do you see the economic merits of the fight were argument they are having right now? mr. holtz-eakin: i do see larry summers, and argued that lowering corporate is the closest thing you define and then arguing with kevin that you should or -- you should lower rates. that's just politics. it's important to make about the consequences for hiring in the u.s. and paid a matter in the u.s. our that's the route to real success for the middle class. it's way more important than anything in the tax brackets or standard deductions. what's not on the table is what really matters. and it is fair that to have that debate. that's the crucial issue in america right now. holtz-eakin,s interconnection form. the debate over local tax elections continues. governor chris christie from new jersey weighs in on the future tax reform. my interview with governor chri

we'll see -- trish: sop for paul krugman that his prediction market was tank. he said this on election night. >> we talk about dow close to 23,000. trish: market was tank and never recall. didn't work south much. >>> republican senator bob corker says the president is leading the country on the wrong path. it is on a path to world war iii. trump responding with a series of tweets criticizing the tennessee senator saying quote, bob corker gave us iran deal. that is about it. we need health care. we need tax reform. we need people that can get the job done. so what is this going to mean for policy right now? because he increasingly is finding himself in a white house that has no real support from the people that are supposed to support him, right? all the republicans instead, you got senator corker out there tweeting, that basically the white house has become an adult day care. this is showing us how much this deterioration of the relationship is impacting things. really tit-for-tat scenario. joining me right now heritage capital president paul schatz. paul, i do

we can talk about the distribution and proportion that goes to it but in 2003, paul krugman made a veryx cut would not create economic growth. the c.b.o. and blue chip forecast was for 2% growth, tom. in the next 12 months we produced 4% growth. in hindsight they say other things were leading to that, we were able to deliver a very large tax cut to the middle class and it produced higher levels of economic growth and i think this tax cut is that on steroids, not only are we doing income tax cuts, 100% expensing of capital equipment which creates investment and job creation, then you're getting the corporate tax rate cut and their ok that argument to the corporate tax rate cut is too narrow for what congress is trying to do. tom: coming up on bloomberg radio, a conversation with the senator from virginia. looking forward to that. from london and new york, this is bloomberg. ♪ francine: bloomberg surveillance with tom and francine from london and new york. et's talk to dan clifton, from strategas, and the openen-er funds strategist with brian levitt. we were talking about the possible reb

remember this, paul krugman, he warned the end was nye, it does look like president donald j.mp. the question is when will markets recover? first pass answer is never. we are probably looking at a global recession with no end in sight. i suppose we could get lucky but on economics as everything else, a terrible saying has just happened. and financial columnists for the "new york times" and cnbc anchor said this after trump won -- these dire predictions were more fear than fact. since the election, the dow is breaking milestones at a record pace. it hit 19,000 after the election in november. the dow hitting 20,000 a couple months later in late january and reaching 21,000 in march and 22,000 in august. if the dow hits 23,000 tomorrow, 54 trading days since it closed above 22,000 for the first time on august 2nd. that will be the fourth shortest span ever between 1,000 point milestones. to nicole petallides on the floor of the new york stock exchange to put us in the action. nicole? reporter: right in the action. we have our superstition to keep them in the bag. they won't open t

krugman talks about what he thinks about the race to the fed chair. prediction markets were thinking that the most likely pick was kevin warsh, former fed governor, one thing is he does have a track record over the past decade and it is consistent, he has been wrong about everything. to donald is married trump's friend's daughter. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. tom: the euro is opposite, i have one screen for you. francine can do better than i can do, oil is elevated. francine? there is aook over, lot of focus once again on currencies as we try to figure out what happened to the euro on the back of a rallying spanish asset, so what happens with abalone at, we're looking at the dollar drifting and oil rising above $51 a barrel as opec predicted. tom: let's do an optimistic chart, small business optimism yesterday. this is michael mckee favorite charts, the glory of the jolt survey in 2007 and then down we go with job openings, less, less, and have they rolled back, they are 27%

we want to play with you, it's from paul krugman who spoke .esterday . >> i didn't think there is a legitimatepose for it. it is suspended. i think it is a wily coyote off the cliff. been saying that for years. >> you describe gold as a currency that does not have a liability attached to it, value. talk about your view on cryptocurrency and is fit is evolving. >> it is not rare. currenciesypto available. it is an unregulated market. paper versionss of it floating around us gold does. people believe gold is manipulated by the paper market. they seem to be a great way to .ove money various items or articles used at the currencies that are convenient. in the digital world, cryptocurrency seems to appeal to that sector now. seashells are used for centuries. there is a confidence there. so let's use it. >> let's get a check with mark crumpton. house speaker paul ryan is taking a hands-off up roach between president trump and republican senator bob corker. paul ryan was asked about the war of words today. >> i think a talk it out amongst yourself. these gentlemen to talk about their issues. i think

we are going to be talking later today to paul krugman. he has the nobel prize in economics.nk we could get a more hawkish fed chair when we have a president right now who clearly is going to want to have lower interest rates for longer? hans: i think this has to do with the reputation of the central bank. within the u.s. administration, -- can have monetary policy the argument is going to dip in that direction. matt: hans, thank you for your time today. sri-kumar global strategies globalredeker is head of strategy at morgan stanley. he is going to leave us on television, but he will join us on the radio. join us to hear more from hans redeker. up next, we speak to the financials bookman -- to the financial spokesman for the year of the -- financial spokesman from germany's green party. number of people looking to maybe by commerzbank. a big chunk of it now owned by the german government. stay with us. this is bloomberg. ♪ ♪ guy: this is the open. let's get your bloomberg first word news update. >> the turkish lira has plunged against the u.s. dollar as tensions between the c

. >> paul krugman yesterday, he chair.on the fed while, it was kind of, the prediction markets were thinking that the most likely pick was the former fed governor who has a lot of things to say about him, but one thing is, he has been quite consistent and wrong about everything. >> he has picked on the phd economist. they are punching back. he has come out on the more hawkish side of things. he is saying we are essentially and theiris demanded focused on financial stability concerns are they are valid concerns. i give a little more weight to the fact we are not hitting the fed inflation target. they want to say they really have a symmetric target of 2%. you miss that for eight years running and you continue to normalize policy and you may never hit the 2%. on the dovish side. >> we wanted him to throw something at the wall. >> great to have you want p are chief u.s. economist at bloomberg intelligence. thank. imf managing director christine lagarde joins bloomberg's -- bloomberg television. 3:00 15 p.m. london time. amazon

julia: nobel prize running economist paul krugman joins us at 3:30 p.m.ip at the fed and it going that bit going that b -- bitcoin. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> i'm in washington and you're watching "bloomberg technology." let's start with a check of your first word news. the white house is finalizing an executive order that would expand health plans offered by associations, to allow individuals to pool together and buy insurance outside their state. president trump could sign the orders this week. e.p.a. administrator pruitt says the trump administration will abandon the obama-era clean power plan aimed at reducing global warming. pruitt says he will si

or krugman -- >> krugman said he would not be raising rates. >> many people are saying that mark grant a lot of people are saying that. even some people who wanted to raise it two years ago are saying that. >> depends on whether you're paying attention to output gaps or attention to -- losing my train of thought, paying attention to financial conditions if you're paying attention to output gaps, you think about tightening now what do you mean, n >> what do you mean output gaps? >> unemployment is very low. >> so not being able to find people >> you say now we have to be careful because we'll get inflation for the reasons you suggested, wages will take a bigger share >> but what about the financial conditions th what is so frightening right now? >> the reason not to tight season if you're worried about debt and leverage and disrupting an equilibrium >> disrupting an equilibrium that you helped create as a central banker by pushing money into this. >> right >> and the rest of the world is easing you will cause the dollar to strengthen >> we were the first ones to go into qe, which means

krugman mentioned paul of princeton.son or three people are awarded, and it is always a scandal of who is not in that group. >> and many times people are not awarded because they have died, and it leads to a look back of their work. tom: we should note that the listen in? -- can we francine: tom, it is not a language we speak. i'm sorry about that. we will wait for the flash headlines to cross. the economic nobel prize lost? the blackiewed as sheep of the nobel family established after the ones we saw last week. tom: part of it is it is not considered a science. to be careful, we have chemistry and physics and the rest of it. there is great debate years ago is this really science at all or is it more art and smoke and incense? this is a process we see of the announcing of the award. they go through some text. let's listen in. >> now for the 49th time. i am the secretary general of the academy. on my right is the chairman of the price committee. -- prize committee. on my left is also a member of the committee. this year's

here we are in paul krugman's zero bound.e and can he migrate to discretion from a rules-based nirvana of the taylor rule? dr. kaufman: i think that is very difficult to do because then you would -- many have lived in the environment for a long time of the taylor rule and espoused it and talked about it. and then to negate it, that requires an enormous change in an individual's psyche. i do think he would try to modify the taylor rule, but he will try to adhere it. it also depends very much on who the other people will be that will come onto the federal board. that will have to support that kind of position. rule, from my perspective, is applicable to an older world. applicable to the current world and the future world of finance. tom: we are going to come back, dr. kaufman with us now. we need to go to london and spain. on taylor were fascinating but the 10 year treasury yield, spain's down some six basis points. the catalano president -- catal president may call regional elections rather than declaring independence from spa

"what'd yoomorrow on u miss," paul krugman.eds prize has been to richard thaler of the university of chicago. he was awarded for his understanding of how humans make economic decisions. for more on his accomplishments, we are joined by a colleague of dr. thaler's. randy, thank you for joining us. give us a sense of what richard thaler's effect will likely be on economics? >> it has already happened. he has really helped to transform the way many economists think about economic behavior. he really wants to try to introduce humanity into the way people think about humans. humans have many flaws and foibles. he takes that seriously and applies that to the way that people make their savings behaviors, the way that they buy or do not buy in the equity markets, and it has profound impact on the way many younger researchers think about the way economic markets work. david: i wonder if this is a reaction against machines. as out rhythms become more and more sophisticated, more high-speed trading, it may break down because it does not t