DeLong

Archive for DeLong

A Policy Proposal That All Economic Schools of Thought Should Prefer to the Status Quo

[UPDATES in the middle and then at the end.] Once again, Nick Rowe has argued that according to the very model that Paul Krugman claims to be using–and I mean here, the full-blown model with intertemporal optimization, not the cruder IS/LM model that Krugman thinks gives surprisingly good policy recommendations, using the full-blown model as […]

Krugman: Whether Potential GDP Is Up, Down, or Sideways, It’s More Evidence That I’m Right

Krugman has made such a strategic error in his advocacy for monetary inflation that even his teammates had to rebuke him. But first some context: “Potential GDP” is a mainstream economics concept referring to the maximum sustainable level of (real) GDP. In the standard New Keynesian paradigm, if actual (real) GDP is above potential, you […]

Accounting Identities Versus Economic Theories

OK I’m going to crowdsource this one, because I’m guessing in the comments there will be two camps who will eventually reach the truth (at least in my mind). In a previous post I alluded to Brad DeLong bringing up a 2009 Fama essay on the impotence of stimulus spending. Upon seeing DeLong’s post, Krugman […]

Niall Ferguson vs. Krugtron the Vincible (sic), Part I

Niall Ferguson has apparently started a series at HuffPo, documenting Paul Krugman’s botched predictions over the last several years. (In case you don’t know, Krugman has been absolutely vicious against NF for years now.) Obviously I am predisposed to love such an endeavor, and what’s really great is that Ferguson catches some things that I […]

We’re #75! We’re #75!

According to a new ranking of the “most influential economics blog,” Free Advice weighs in at #75. I couldn’t have done it without both of you. I have to say, though, that I wonder about the method used here to calculate “influence.” According to the site, they use an “input output model” to generate the […]

News Flash: The Non-Stupid CBO Proves DeLong Was Wrong

I am traveling all week and have to keep this short and sweet. Here’s a chronicle of what happened in yet another exchange of blogfire with my favorite Keynesians: ==> Brad DeLong said, “There are no signs in the pace of technological progress, in the level of investment…[or in several other factors–RPM]…to suggest that the […]

DeLong Sees Nothing In the Investment Data That Would Slow Capacity Growth

[UPDATE below.] Brad DeLong has this habit where he makes it look as if he’s walked through several different strands of evidence, and they all come down squarely on the position he agreed with at the start of his investigation–even though some of the evidence obviously cuts the other way. It’s like we’re arguing over […]

Potpourri

==> Don Boudreaux has a good discussion of the claim that Hayek is a liquidationist–not that there’s anything wrong with that. (HT2 von Pepe) ==> Pete Boettke is puzzled that the Austrians seem to be almost alone in thinking “micro” relationships are crucial to understanding macro disturbances. Me too. ==> John Carney sent me his […]