Paul Krugman: Welcome to the 30s

Martin Wolf is shrill (and rightly so). "Before now, I had never really understood how the 1930s could happen," the Financial Times columnist wrote in an op-ed published on June 5.

"Now I do. All one needs are fragile economies, a rigid monetary regime, intense debate over what must be done, widespread belief that suffering is good, myopic politicians, an inability to co-operate and failure to stay ahead of events."

Right on cue, the European Central Bank declined to cut interest rates, or announce any other policies that might help. Because what possible reason might there be to take action?