Krugman

Archive for Krugman

U.S. Government Policy and Oil Prices

For those who like articles discussing really bad predictions confidently made by Krugman, this one’s for you. Also a nice Obama quote from 2012: “As a country that has 2 percent of the world’s oil reserves, but uses 20 percent of the world’s oil — I’m going to repeat that — we’ve got 2 percent […]

Standard Financial Models Wouldn’t Predict That Yields Would Spike After End of QE3

When it helped his cause, Krugman understood the stock/flow distinction and why you wouldn’t think the well-anticipated end of asset purchases would cause a sudden change in market price. Yet that didn’t stop Krugman from arguing recently that Treasury yields since the end of QE3 must mean Fed hasn’t been holding down yields. I walk […]

The Rhetorical Significance of the 1920-1921 Depression

My favorite NY Times economist is none too happy that Jim Grant wrote a book on the topic. I’ll let others (like Tom Woods) speak for themselves, but as for me, I am completely unapologetic about what I’ve written. I explain the situation at Mises CA. An excerpt: What happened in my case is that […]

Krugman: “Sticky Wages I Win, Flexible Wages You Lose”

I have pointed this out before, but it’s funny when Krugman shakes his head at the morons who dispute the sticky-wage case for Keynesianism (e.g. when he recently posted a chart about wage adjustments in Spain during the crisis), when he earlier had taken Casey Mulligan out to the woodshed for thinking sticky wages/prices had […]

American People Don’t Know Basic Economics Because Economists Have Misled Them

[UPDATE: As Keshav and David pointed out in the comments, I made a bonehead mistake in the original draft of this post, which ironically strengthens my underlying point rather than hurting it. I’ve corrected the mistake below, and in a follow-up post I’ll deal with this issue more directly.] Steve Landsburg recently wrote a post […]

Landsburg Agrees That Paul Krugman (Often) Is an Anti-Economist

Since I’m still getting ready to hammer him for his defense of Gruber post, I want to make sure to heap kudos on Steve’s most recent post on Krugman, regarding Krugman’s post defending Obama’s immigration announcement. Some key excerpts: Dammit, I hate this stuff. Krugman says (and I agree with him) that it’s cruel to […]

Krugman Shows How Consumption Taxes Raise and Lower Price Inflation

Back in 2012, some people were worried that rising price inflation in the UK meant that the Bank of England should tighten. But Krugman explained why that was wrong: But, say the small-[output]-gap people, if Britain is deeply depressed relative to potential, we should be seeing deflation, whereas there’s actually inflation. Is this a decisive […]

“Lord Keynes” Calls My Raise on Krugman Kontradiction

In my recent post on Krugman’s Kontradiction regarding “contractionary policy is contractionary,” I wrote this: More generally, Paul Krugman (as well as a gaggle of lesser Keynesian analysts) simultaneously believe the following: ==> The sales tax hike in Japan was obviously a stupid thing to do in a weak economy; of course if you make […]