paul krugman

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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Flow Of Funds And Keynesian Macroeconomics

15 September 2013

The subject of money, credit and moneyflows is a highly technical one, but it is also one that has a wide popular appeal. For centuries it has attracted quacks as well as serious students, and there has too often been difficulty in distinguishing a widely held popular belief from a completely formulated and tested scientific […]

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The Rate Of Saving In Wynne Godley’s Models [Updated]

13 September 2013

In Krugman’s blog post which is dismissive of Wynne Godley’s work (referred in my previous post) he (Krugman) makes the following claim: First involved consumption spending. Conventional Keynesian consumption functions suggested that the savings rate would rise as incomes rose — and this wasn’t just the Keynesian interpreters, Keynes himself made the same claim. which […]

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Wynne Godley: The Keynes Of Flow Of Funds

13 September 2013

Monetary and financial data, so far as they are based on institutional balance sheets and prices in organized markets, are abundant. Modern machines have made it possible to improve, refine and expand the compilation of these data, and also to seek empirical regularities in financial behavior in the magnitude of individual observations. On the aggregate […]

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