Randy Wray — Why is Paul Krugman Frustrated with Heterodoxy?

The blog-O-sphere has been lit up in recent days with Krugman’s announcement that he’s frustrated by the gloating of Heterodox Economists. He claims that with good hindsight, all the mainstream economists who “never saw the crisis coming” can use their flawed textbook approach to explain what happened. Gee, that makes me feel a lot better! So we don’t need to listen to those heterodox types who actually saw it coming, any more. Forget Minsky! Go back to ISLM models! Models that do not have banks–let alone shadow banks–or the potential for financial crises.

Economonitor — Great Leap Forward
Why is Paul Krugman Frustrated with Heterodoxy?
L. Randall Wray | Professor of Economics, University of Missouri at Kansas City