There’s Something About Maynard****
Paul Krugman’s call to arms against austerity
Krugman is still blowing it out his ass…
A reply from the targets of his most recent ad hominem professional character assassination pieces in the NYT and NY Review of Books.
Lets see. On one side we have the authors of one of the most substantive scholarly books on financial crises written in the last few deacdes. And on the other side a political shill who by this stage is little more than a bombastic egomaniac whose only position is Argument from Authority.
What a fraud. Krugman is the Bill Maher of professional economics. A preening careerist phoney.
I wouldnt say Rogoff is a shill even though he misrepresented/ data in the so called iconic book.
Indeed. A fraud and then some.
So R and R get it wrong and Krugman is the fraud? Riiiiight.
You’ve been reading Krugman long enough to know that his standard M/O is to build a straw man argument, knock it down and engage in character assassination. He’s a political pundit in the same mould as Bill O’Reilly.
In this case, what exactly is the strawman in question?
Reinhart and Rogoff, seen in the wild. . . before Krugman advanced. . .
They are either frauds, or utterly incompetent; and should be pilloried by those anti-Keynesians as much as they are the Keynesians.
Reinhart-Rogoff Uproar Settles Nothing - Caroline Baum -> bloomberg.com/news/2013-05-0 … thing.html
The Embarrassing Error of the Empirical Economists - Robert Wenzel -> economicpolicyjournal.com/20 … rical.html
Austrians wouldn’t need to locate a excel sheet as their philosophy is impermeable to evidence, empirical or otherwise.
Much like people who call themselves Keynsian… I doubt very much that Mr. Keynes would recognise them…
I do enjoy this double think. He lacks credibility because of his use of ad hominum attacks, and because he is a “political shill who by this stage is little more than a bombastic egomaniac”. When will your book be out jmc, you need to share these insights more widely.
Latvian PM says “Krugman can’t admit he was wrong”
The background to this is that Latvia had by far the toughest Austerity out of all the EU countries In 2008 ( 30% pay cuts in PS, compulsory redundancies etc.) it was the only country to shut its fiscal deficit of over 10% in a timely manner while other countries like Spain and Greece chose not to anything about their ballooning deficits in 08/09, they chose the Keynesian option to run a deficit because they were in recession.
Now over 4 years later the Latvian economy is growing rapidly, 2013 will be their third year with GDP growth of over 5%, a government surplus, falling debt to GDP ratio, falling unemployment, the fastest growth in domestic consumption in the EU. This while the likes of Greece, Spain which chose to shut their fiscal deficit at much slower rate, and none yet have btw, are facing stagnant/falling growth, rising unemployment, rising debt to GDP ratios.
Latvia is a small open economy like Ireland and I think this is why this approach worked, maybe in more closed economies like spain and Greece this it might not have been as successful.
The Neverending Irish Success Story
I thought Ireland done austerity because of the no money situation.
We had cutbacks and tax increases but we still left the big over bloated government in place.
Having no money has never been a problem for politicians who need to buy votes and come across as kind-hearted in the papers.
By the way, it’s interesting to see the US 10 year making a new 52 week low this week.
God knows what will happen if the Fed ever even attempt to exit the market. That will be a hoot!
A fine mess these Krugmanites are creating…
They already TOLD US that.
So as interest rates rise the Fed will increase the interest paid on reserves. Sounds great. What happens when the rates rise to a point where the Fed’s profits, which are currently being remitted to the Treasury, turn into losses and the Fed sends a bill to the Treasury?
Fed losses on their mortgages and bonds will be huge, plus the increased interest bill for the Treasury will put severe pressure on their budget.
New 52 week lows again today. Next step tapering, then exiting. Not a chance!