How Did Economists Get It So Wrong? – NYTimes.com
by Melanie on 04/09/10 at 11:54 pm
How Did Economists Get It So Wrong? – NYTimes.com.
Fred R. Conrad/The New York Time
This article is long, but worth the read. It’s a year old, but prescient. Paul Krugman gives a lesson in how economists think and why they missed the boat in predicting the current recession. Fascinating. He quotes John Cochrane saying that high unemployment is good: “We should have a recession. People who spend their lives pounding nails in Nevada need something else to do.”
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RDK
Sep 5th, 2010
Ron Paul has been warning of it for a LONG time, Austrian economists had it right, only Keynesians had it wrong. Krugman being an example of one who is stupendously wrong.
Melanie Robbins
Sep 5th, 2010
Sounds like you didn’t actually read the article. The austerity folks have had it all wrong. Keynes had it right: people can’t be counted on to act rationally when it comes to money. Moving toward austerity during a recession leads us toward the zero bound limit, which causes deflation. Not good! Government’s role in this scenario is to spend money, since rich people won’t, to keep from spiraling into a full-blown depression.
Tajmari
Sep 4th, 2010
How Did Economists Get It So Wrong? – NYTimes.com http://bit.ly/b7Xhle
This comment was originally posted on Twitter
BobConrad
Sep 5th, 2010
RT @Tajmari: How Did Economists Get It So Wrong? – NYTimes.com http://bit.ly/b7Xhle
This comment was originally posted on Twitter