Reappoint Bernanke: Krugman

If there’s any justice, Ben Bernanke will get another go-around at the helm of the Federal Reserve, Paul Krugman tells Bloomberg. “He’s earned the right to a second term,” the Nobel laureate says. “When the banking system failed to deliver capital where it was needed, he put the Fed into the market.” Bernanke’s 4-year term ends in January, and debate has been swirling over whether he should be reappointed.

“I think Bernanke has done a really good job,” says Krugman. “He failed to see this coming and he was behind the curve in early phases. But it’s really very hard to see how anyone could have done more to stem this crisis.” But Joseph Stiglitz, another Nobel winner, says President Obama should consider a replacement. “There are lots of potholes in the road,” he argues. (More Ben Bernanke stories.)