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Monday, June 14, 2021

Guest Post — Krugman’s cockroach views on Brazil and hyperinflation

Today, I am publishing a special guest post from three authors working in the Modern Monetary Theory (MMT) tradition about inflation in Brazil. They are examining recent claims by Paul Krugman that the Brazilian experience ratifies basic Monetarist theory that links excessive monetary expansion with inflation (and hyperinflation). It turns out that the reality is quite different which is no surprise when it comes to confronting Krugman’s assertions with facts.

Daniel Negreiros Conceição is a professor of Public Planning at the Federal University of Rio de Janeiro.

Fabiano Dalto is a professor of Economics at the Federal University of Paraná.

Caio Vilella is a PhD student of Economics at the Federal University of Rio de Janeiro.

Fadhel Kaboub is a associate professor of economics at Denison University and president of the Global Institute for Sustainable Prosperity.

Bill Mitchell – billy blog
Krugman’s cockroach views on Brazil and hyperinflation
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

4 comments:

  1. Krugman combines quantum mechanics and economics, so he can be everywhere and nowhere simultaneously.

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  2. “ According to Krugman, 1990s Brazil is supposedly a rare instance in which the “cockroach idea” did apply. This is simply wrong.”

    They could just say you’re wrong.... then what?

    Tom what does the Socrates playbook say to do then? When the one Art degree person says the other side is wrong but then the other Art degree guy on the other side says the first guy is wrong? Cut the baby in half?

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  3. “ Paradoxically, after giving such a powerful critique of the idea that increases in the stock of money cause inflation, Krugman changes course and embraces the very “cockroach idea” he had so forcefully attacked, albeit in only one particular case:”

    So what? Art degree Socratic methodology includes paradox there is nothing wrong with Krugmans approach here...

    Do these guys even know what methodology they are using? Seems like not...

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  4. https://philosophybreak.com/articles/socrates-and-the-socratic-paradox-i-know-that-i-know-nothing/

    “ Socrates believes himself to be wiser than those he speaks to because, unlike them, he admits his ignorance. This thought is encapsulated by the paradoxical statement:

    I know that I know nothing.⁣”

    Paradox is 100% fair game.... there is nothing wrong with it.... doesn’t work in application to material matters but it is perfectly appropriate to be used by people trained to use it...

    ReplyDelete