Nobel Prize Winner Robert Mundell Sees Government Role In Creating Housing Bubble And Favors Keeping The Bush Tax Cuts

See Mundell: Deflation Risk for the Dollar by SEAN RUSHTON, from the WSJ, 5-23. Excerpts:

"From 2001-07, he argues, the dollar underwent a long, steady decline against the euro, tacitly encouraged by U.S. monetary authorities. In response to the dollar's decline, investors diverted capital into inflation hedges, notably real estate, leading to the subprime bubble."

"To supercharge the U.S. recovery, he also recommends permanently extending the Bush tax rates and lowering the corporate income tax rate to 15% from 35%."