11 Jul 2009

Krugman: "Bob Murphy’s Novel Thesis Is Right!"

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OK that’s not quite what he said, but look: In this post Krugman argues that, heh heh, if you naively look at the data, heh heh, it seems that the Fed cutting interest rates actually hurts the economy. And so the Chicago School monetarists are being hypocritical when they condemn fiscal stimulus, because their own arguments would “prove” that monetary stimulus doesn’t work either.

That of course is the main contribution of my Depression book, and I crystallized the counterintuitive point in this article, “Banks Should Raise Prices In a Recession.” So did Krugman buy my book, or just read the Mises Daily article?

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