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Tag Archives: Krugman
What Did Krugman Mean?
Was Krugman unambiguous in his recent criticism of Narayana Kocherlakota? Absolutely not. He equated Kocherlakota to Austrian theory, and attempted to debunk the latter with a broad, sweeping criticism of the former. Continue reading
Further Notes on Capital Theory and Unemployment
Austrian capital theory does explain why the consumer-good industry is hit, along with the capital-good industry, during recessionary periods. Furthermore, Austrian business cycle theory is not real business cycle theory – there is a different in causation, while the latter tends to lend itself to the pitfalls of macroeconomic aggregation. Continue reading
Posted in Theory
Tagged Austrian, business, Capital, cycle, Krugman, Theory, Unemployment
7 Comments
Unemployment in the Hangover Theory
Krugman argues that Austrian theory doesn’t explain why a fall in production occurs in sectors not directly related to the housing sector. This is untrue. Austrian capital theory explains this perfectly. Continue reading
Who is the Utopian?
Who are more utopian, Austrians or Keynesians? Continue reading
Brief Overview of the Keynesian Liquidity Trap
A brief overview of the Keynesian liquidity trap theory, from John Maynard Keynes, through John Hicks, to Paul Krugman. Continue reading
Structural Unemployment and Business Cycles
High natural unemployment is a product of poor labor policy, and not of markets or the length of recessions. Continue reading
Sumner on the General Theory
Had Roosevelt continued with the plan to introduce a fiat regime in the United States, would have Keynes still written The General Theory? Continue reading
Sure, Evidence Looks Keynesian If That’s How You Doctor It
In his most recent op-ed, “That ’30s Feeling”, Paul Krugman draws parallels between current calls for austerity and the Germany of the 1930s. This time, factual history is against Krugman’s thesis. Germany’s collapse in the early 1930s was hinged on debt and the inability of their central bank to pay for it. Continue reading
Posted in History
Tagged debt, Depression, fiscal, Germany, Government, Great, Krugman, Stimulus
10 Comments
Krugman on Hayek
Krugman believes high interest rates will lead to persistently high unemployment. The Austrians respond. But, ultimately, nobody wins. Continue reading
Posted in Miscellaneous
Tagged Anderson, Austrian, Depression, Economics, Great, Hayek, Keynesian, Krugman, liquidation
18 Comments
Irrelevance of Fiscal Austerity
Krugman remains bewildered at the G20’s call for fiscal austerity by pointing out that slashing stimulus spending is not bound to have a major impact on debt growth and that such a policy could have long-term harmful side effects. The latter concern is legitimate, at least if you believe that Keynesian countercyclical fiscal policy is the correct prescription for our current recession, but I feel that Krugman leaves out a few key details. Continue reading
Posted in Current Events, Theory
Tagged austerity, countercyclical, debt, fiscal, Krugman, policy, Stimulus
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