Kling with Boudreaux chiming in: WRONG KRUGMAN! You can't forget that it also has distributional and incentive problems!
If you haven't had enough of the debt debates and if you want Bob's OLG model in words rather than in a nice understandable table, and if you want commentary from people who (seem to, to me) have a weaker grasp of what Krugman was saying than Bob, click through the links.
One virtue of Kling's post is that it details how one particular distributional nightmare associated with inflationary finance could play out. But as usual, the Krugmania is driving the narrative.