Nobel Prize-winning economist Paul Krugman praised Speaker of the House Paul Ryan (R-Wisconsin) for a tax reform plan.
"The destination-based cash flow tax which included the border tax adjustment was a not stupid idea," Krugman said on Bloomberg TV. "It has bipartison support among some tax experts."
Economist Larry Kudlow was critical of the border adjustment tax, which was opposed by the ailing U.S. retail industry and isn't part of President Donald Trump's tax reform plan.
Krugman also didn’t mince words when asked about former Federal Reserve Governor Kevin Warsh’s candidacy to run the institution: “He’s been wrong about everything,” from inflation to fiscal policy, Krugman told Bloomberg Television.
But that may not stop Trump from nominating Warsh, 47, for Fed chair, because he has solid family connections and a Republican pedigree, according to Krugman, a consistent critic of the GOP. Warsh is married to Jane Lauder, daughter of Trump friend Ronald Lauder.
“It’s kind of almost awesome. You could almost make money by taking whatever he thinks is going to happen and betting the other way,” according to Krugman. A spokesman at the Hoover Institution, where Warsh is now a fellow, did not immediately respond to a request for comment.
Krugman last week used an article on the New York Times web site to link to Warsh’s warning in the wake of the 2008 collapse of Lehman Brothers Holdings Inc. that he was “still not ready to relinquish my concerns on the inflation front.” He has also questioned Warsh’s doubts over quantitative easing.