21 Jul 2014

A Freudian Explanation of Paul Krugman

Krugman 9 Comments

Phil Magness posted this in the comments of my Facebook link to Krugman’s banana post. I of course knew about this memo, but I’m not sure if I ever saw the section header.

Krugman Inflation Timebomb

You may recall that this was the period in Krugman’s life when he flirted with Austrian economics.

9 Responses to “A Freudian Explanation of Paul Krugman”

  1. Major.Freedom says:

    No no no no, this was when a Republican was President.

    It’s OK everyone, I got this.

    • Major.Freedom says:

      When the facts change, opinions should change. What do you do sir?

      • Tel says:

        Go back to the guy selling “facts” and ask some long, hard questions.

  2. Bob Roddis says:

    Good thing that the vulgar internet Austrian[s??] didn’t predict hyperinflation after the housing bust. It’s also a good thing that the Keynesians always give credit where credit is due.


  3. skylien says:

    I can’t help but thinking that people quite often really only fight the last war.

    Whatever I am sure we reach “escape” velocity soon…

  4. senyoreconomist says:

    Dr. Murphy,
    Did Krugman really flirt with Austria economics at one time in his career or were you just joking. If it wasn’t a joke could you kindly give some more details? Thank you

    • Bob Murphy says:

      I was joking. Lately Krugman is making it sound as if it’s only right-wingers (like Austrians) making big (price) inflation predictions and then they don’t change their model when the predictions blow up in their faces.

      • senyoreconomist says:

        Thannks. But it wasn’t so far fetched, remember when Paul Samuelson wrote the fan letter to Henry Hazlitt?

  5. Bob Roddis says:

    More Austrian predictions: Back in 1982-1983, almost all of the libertarian magazines were predicting economic doom due to Reagan’s failure to cut spending and his increased defense spending. My friend who was a monetarist-based financial planner said we were on the cusp of a great economic boom.

    Been there, done that.

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