I'm still away on the road (which is why comments and questions in the last week have gone unanswered). However, while I'm away, here's a point made by Joseph Stiglitz at Project-Syndicate.org. John Maynard Keynes famously said that today's policy-makers are the slaves of defunct economists. Joseph says, and I agree, that today's policy makers … Continue reading A Contagion of Bad Ideas. Not Only Slaves to Defunct Economists, but Slaves to Bad Ideas.
Krugman writes on the origins of the split between "saltwater" (Keynesian & New Keynesian macro) and "freshwater" ("rational expectiations, real business cycle) macro economics. Memories of the Carter Administration - Paul Krugman Blog - NYTimes.com.