The U.S. economy is making some progress, says Paul Krugman, but the real underlying issue here is something he calls a "nightmarishly dysfunctional political situation."

So, who's to blame for this nightmarish situation? It's "entirely one-sided" says Krugman. Republicans are to blame.

"Now watching Mitt Romney campaign, I find myself wishing for the honesty of George W. Bush," Krugman tells us. "So, this is kind of an amazing evolution -- and not in a good direction."

Watch Krugman's explanation below:

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Produced by Kamelia Angelova, William Wei & Daniel Goodman

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