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jsalvatier comments on Mathematicians and the Prevention of Recessions - Less Wrong
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If I'm understanding my Sumner right, Krugman is just plain wrong about this. Central banks can decrease interest rates, promise to keep future interest rates low, engage in quantitative easing, charge negative interest on reserves, and print physical money and drop it out of helicopters. "There is no zero bound" is a market monetarist slogan and I have to say it sounds a tad plausible from over here.
My understanding is that Krugman is not wrong, he just writes correctly but very misleadingly for reasons that are not totally clear.
Oh, I think his reasons are pretty clear. They basically amount to politics.
I found the article "The Deflationist: How Paul Krugman found politics" educational on that point.
Holy crap: that article has "get to the point":fluff ratio of about 5%. I appreciate the link, but just want to warn readers they need to skip past a lot of meandering about scenes from NYC to get the answer to the question.