Rogoff on the financial crisis

I like this piece by Ken Rogoff. I think he is correct to emphasize that recessions generated by financial crises are different, and slower to resolve. I think he is also correct to emphasize the importance of expectations and to criticize those who focus overmuch on short term stimulation.

I would not encourage inflation as Rogoff does, even as a last resort. While Rogoff is certainly correct about what it would do I don't think our institutions are up to it and it could be just another way to defer necessary entitlement reform.