paul krugman

Economists Can Be So Wrong

14 August 2015

Oh boy! Krugman could not have been more wrong about Macroeconomics than what he said recently in his blog The Conscience Of A Liberal for The New York Times. In a blog post, Competitiveness And Class Warfare, he concludes: International competition is a mostly bogus notion; … In a sense it is not surprising. Paul Krugman has done […]

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Krugman And Causality

17 May 2015

In a recent post titled Money, Inflation And Models for his NYT blog, Paul Krugman clearly states that “normal equilibrium macro models” say that the direction of causality is from money to prices. Krugman says: Consider the relationship between the monetary base — bank reserves plus currency in circulation — and the price level. Normal equilibrium macro models say […]

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Interest Rate, Growth And Debt Sustainability

7 April 2015

Frequently, discussions about debt sustainability have discussions about the importance of the interest rate and growth in debt sustainability analysis. See for example, today’s Paul Krugman’s post on his blog. It is concluded that as long as the rate of interest is below the rate of growth, the ratio public debt/gdp doesn’t explode. Unfortunately, this […]

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Thomas Palley — New Keynesianism As A Club

28 July 2014

Thomas Palley has a new blog post detailing how much recent new Keynesian theory is a rediscovery of ideas developed by old Keynesians and Post Keynesians over the past thirty years and that new Keynesians persistently fail to acknowledge that precedence. New Keynesianism as a Club Club, noun. 1. An association or organization dedicated to a particular […]

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Paul Krugman, Gattopardo Economist, Part 2

25 April 2014

As mentioned in my previous blog, Paul Krugman tries his best to put down heterodoxy. His claims that nobody predicted the crisis is deeply unintellectual when someone such as Wynne Godley and other heterodox economists had warned about it. Moreover, Jan Hatzius who uses Wynne Godley’s approach also had made a case for a severe […]

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Paul Krugman, Gattopardo Economist

25 April 2014

In response to Thomas Palley’s op-ed, Paul Krugman has written a couple of pieces on his New York Times blog (here and here) I have seen many heteredox economists defending Krugman but these pieces should now make it crystal clear that Paul Krugman himself is the head of Gattopardo Economics. Consciously or subconsciously, Krugman’s strategy has been […]

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Evan Soltas Is The Future Greg Mankiw

13 March 2014

A recent post of Paul Krugman points out to a “worrisome campaign against full employment”: The leader of this movement is an economics student named Evan Soltas, although Krugman doesn’t name him, maybe because Soltas is just a student. If you go over to Soltas’ blog, you will find the vaguest interpretations of data claiming […]

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Tobinesque Models

15 February 2014

Paul Krugman writes today on his blog on James Tobin’s work: Let me offer an example of how this ended up impoverishing macroeconomic analysis: the strange disappearance of James Tobin. In the 1960s Tobin developed and elaborated a sophisticated view(pdf) of financial markets that offered insights into things like the role of intermediaries, the effects of […]

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Balance Of Payments Adjustments

21 October 2013

Paul Krugman seems to have been thinking on issues related to open economy monetary macroeconomics these days! He has recently warned his readers to not confuse accounting identities with causation but in a recent blog post he seems to be doing it himself. So Krugman says: So, here we go. Start from the observation that the […]

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James Tobin Already Knew The Answer

19 October 2013

Question: Are flexible exchange rates better than fixed exchange rates? Answer: Silly oversimplified question. In a blog post today, Paul Krugman asks Do Currency Regimes Matter? – in the context of the Euro Area. My answer to that would be James Tobin’s wisecrack: I believe that the basic problem today is not the exchange rate regime, […]

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