Paul Krugman on Crisis Causality

Question: Is there a bigger economic crisis looming?

Paul Krugman: Well that’s always a possibility.  This is one of the fields . . .  This is one of my core fields.  But I’ll tell you. One thing you learn from that is the really big economic crises always come from a direction you didn’t anticipate at all.  So once in a while . . .  Argentina 2002 happened to be a crisis completely foretold.  You could see it coming.  You could see the shape.  But I don’t see a really severe economic crisis unless, you know, if we bomb Iran and oil goes to $150 a barrel.  Then you can give me terrible things.  But I don’t see it right now.

An economic crisis is always a possibility, Krugman says.