Sunday, April 27, 2014

Steve Keen — Why Krugman needs a new school of thought

Steve Keen goes off on Krugman's intransigence in the face of contradictory evidence, calling him an apologist for the mainstream.
No need for change, boys and girls: mainstream economics has everything under control. We missed the crisis just because we failed to observe the shenanigans in the shadow banking system. Once we realised our observational errors, we had all the necessary tools and knew what to do (oh, and what the rebels said would happen didn't anyway, so there!).

As usual, Krugman’s reasoning is neat, plausible, and wrong. The main reason that mainstream economics survived the challenge of the Global Financial Crisis is not because of its strength, but because of its irrelevance.
 Business Spectator
Why Krugman needs a new school of thought
Steve Keen


Roger Erickson said...

Krugman should just take his Nobel prize in BS and all his camp acolytes too, and retire to some gated community.

In fact, Krugman would do real well with Don King as his publicist manager.

Get him in the ring with Ali, and they could have a spouting match.

The only question: Why does Keen bother talking with Krugman? It's a waste of time, and making acknowledgement where none is due, or functional.

Ralph Musgrave said...

“mainstream economics has everything under control”. Hilarious. It is widely agreed that Dodd-Frank and the new Basel rules are a farce, and that it’s only a matter of time before the next crunch.