An excerpt from my latest Mises CA post:
This sort of thing happens a lot with Keynesian policy recommendations. In addition to this latest episode involving Argentina, let’s not forget that Krugman in 2002 infamously called for a housing bubble (and then later tried in vain to walk it back). That didn’t turn out too well.
Also remember that Krugman in 2011 pointed to the VA as a “huge policy success story, which offers important lessons for future health reform.” Speaking of health care reform, let’s circle back to Matt Yglesias, who predicted in July 2013 (!): “I’ve got a new column up about the White House’s plans for the rollout of the Obamacare exchanges and I wanted to once again take the opportunity to lay down a marker and say once again that Obamacare implementation is going to be a huge political success.”
Yes, I agree with Krugman that there is an important lesson here, and it is this: Read Krugman and Yglesias religiously, then do the OPPOSITE of what they recommend.