One of the hardest concepts for Principles students, politicians and pundits, oh heck, just about everyone to fully grasp is inflation. A big part of the reason is because inflation is an abstract concept that is not directly measurable. We can conceive of it, but we can't measure it. I'm no physicist (and open to … Continue reading Yes, Inflation/Deflation is Hard to Measure
On Friday Paul Krugman posted the first of what has become 2-3 posts on his blog wherein he claims that MMT is "just wrong". As I noted Friday here, I commented on his blog to point out how his post was deceptive and misrepresented MMT. I was not alone. Well over 100 people have taken … Continue reading Krugman Is Still Wrong About MMT – and with it still wrong on deficit
Paul Krugman comments today on Modern Monetary Theory (MMT). Unfortunately, he gets it wrong. For example, he says: Right now, deficits don’t matter — a point borne out by all the evidence. But there’s a school of thought — the modern monetary theory people — who say that deficits never matter, as long as you have … Continue reading Krugman on MMT
Primarily for my Comp Systems and Political Economy students (this is part one): As previously noted here, the events in Madison, Wisconsin are not unique. There appears to be a concerted effort to roll-back collective bargaining rights for many workers and roll-back social programs all because of a supposed "fiscal crisis"- the idea that government … Continue reading Shock Doctrine, Neo-liberalism, and Current Events
This time I'll outsource the job to Paul Krugman at the New York Times. I don't always agree with Paul, but he's spot on with this. The Obama administration never misses an opportunity to miss an opportunity, especially if it involves banks. Epitaph For An Administration In today’s report on the foreclosure mess, a revealing sentence: … Continue reading Leadership FAIL: Again
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.
Long, but excellent reading on the recent (last few decades) of the history of macro thinking. I think Krugman understates some issues, but much of it is good. I recommend. It’s hard to believe now, but not long ago economists were congratulating themselves over the success of their field. Those successes — or so they … Continue reading Krugman on How Did Economists Get It So Wrong? – Excellent