There are a lot of ugly forces being unleashed in our societies on both sides of the Atlantic because our economic policy has been such a dismal failure, because we are refusing to listen to the lessons of history. We may look back at this thirty years from now and say, ‘That is when it all fell apart.’ And by all, I don’t just mean the economy.Watch it at Raw Story
Krugman: This may be when it all falls apart
by Eric Dolan
I wish O had listened to Krugman instead of Summers.
ReplyDeleteThat was an outstanding interview. Obviously the interviewer was in Krugmans court too but he was no sycophant. Krugman certainly knows the score out there.
ReplyDeleteTheres two economics 1) Economics of and by the rich which is supported through monetary policy 2) Economics for everyone else which is supported through fiscal policy. They both have their own logic and CAN be congruous but in times of large BSR they work against each other. Fiscal policy demands democracy while monetary policy demands plutocracy.
I noticed, that in the interview, Krugman characterized himself as a follower of Hyman Minsky -- a step towards MMT and Steve Keen?
ReplyDeleteKrugman mentioned some time before that the people who missed the oncoming freight train were unaware of Minsky, so this is not new. However, Krugman is not an expert in Minsky and seems to have only rather cursory knowledge in comparison to Randy Wray, who was a student of Minsky.
ReplyDelete