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Category Archive: Paul Krugman

  1. Headline From 2036: Banks Say ‘Drop Dead’ To White House

    At sep­a­rate news con­fer­ences Demo­c­ra­tic and Repub­li­can lead­ers accused each other of polit­i­cal oppor­tunism after Con­gress again failed to raise the debt ceil­ing and banks refused the President’s request to fund a gov­ern­ment bailout.

    As a result, the fed­eral gov­ern­ment shut­down that began in 2011 will con­tinue for another year. [read full story]

    Posted in: economy, Finance, Fiscal Policy, Forbes, Headlines From The Future, Monetary Policy, Paul Krugman, Public Policy
  2. How Did Economists Blow It? Part 3 – The Assumed Markets Theory

    Two week­ends ago Paul Krug­man explained in a New York Times Mag­a­zine arti­cle that many econ­o­mists can’t fore­cast the econ­omy because they have a cultish belief in the nearly always wrong effi­cient mar­ket the­ory. Mr. Krugman’s solu­tion, an aca­d­e­mic exor­cism where econ­o­mists renounce their loy­alty to the effi­cient mar­ket the­ory and swear alle­giance to neo-Keynesianism, has cre­ated quite a stir in the pro­fes­sion and prompted a num­ber of per­sonal and pro­fes­sional attacks on Mr. Krug­man. Unfor­tu­nately, both Mr. Krug­man and the effi­cient mar­kets believ­ers are both wrong. The the­ory is cor­rect but the con­di­tions nec­es­sary for the effi­cient mar­kets the­ory to work don’t exist. [read full story]

    Posted in: Credit Crisis, economy, New York Times, Paul Krugman, Public Policy, REGULATION
  3. How Did Economists Blow It (Part 2)? – They Missed The Negative Externalities of America’s Limited Liability Society

    Paul Krugman’s New York Times Mag­a­zine arti­cle of Sep­tem­ber 6th main­tains that exter­nal­i­ties are the most impor­tant fac­tor in mar­ket fail­ures, but then never con­sid­ers whether or not large “exter­nal­i­ties” caused the fail­ures of 2007. By ignor­ing exter­nal­i­ties, the usu­ally bril­liant Mr. Krug­man illus­trates why econ­o­mists didn’t see the mar­ket crash and Great Reces­sion. The unin­tended and unrec­og­nized effects of neg­a­tive exter­nal­i­ties were prob­a­bly the largest fac­tor that con­tributed to the sum­mer of 2007crash, yet econ­o­mists vir­tu­ally ignore these cul­tural and soci­o­log­i­cal phe­nom­ena that almost resulted in eco­nomic sep­puku. [read full story]

    Posted in: economy, Finance, New York Times, Paul Krugman, Politics, Public Policy
  4. Paul Krugman Gets It Really Wrong In His Analysis Of The Economics Profession

    Paul Krugman’s New York Times Mag­a­zine arti­cle explain­ing the dis­mal state of the eco­nom­ics pro­fes­sion is itself an object les­son in what is wrong with the eco­nom­ics pro­fes­sion.  While Mr. Krug­man is one of the most tal­ented econ­o­mists alive, this arti­cle isn’t an exam­ple of Mr. Krug­man at his best.  Instead of try­ing to fig­ure […] [read full story]

    Posted in: Credit Crisis, economy, Finance, New York Times, Paul Krugman, Politics, Public Policy
  5. II" rel="bookmark">Don’t Worry About The Debt Tsunami Part II

    Last week I wrote that the for­ward cal­en­dar of to-be-issued gov­ern­ment and mort­gage related debt isn’t going to swamp the econ­omy. Since I wrote my arti­cle Paul Krug­man wrote an arti­cle cit­ing research done by Brad Setser that sup­ports my the­sis. Setser’s analy­sis pre­dates my arti­cle and is really high qual­ity work. I am cer­tain that […] [read full story]

    Posted in: Brad Setser, economy, Finance, Fiscal Policy, Paul Krugman, Public Policy, Savings Rate
  6. Really Good Analysis By A Really Smart Guy

    Paul Krug­man won the Nobel Prize for Eco­nom­ics because he is a really smart guy who often says and writes incred­i­bly insight­ful things. On Novem­ber 20th he wrote an arti­cle for the New York Review of Books titled What To Do Now that pro­vides a great frame­work for under­stand­ing the cur­rent cri­sis and what gov­ern­ment […] [read full story]

    Posted in: Depression, economy, Finance, Paul Krugman, Politics, Public Policy