Posts Tagged ‘Krugman’

Why RBC is Awesome

Paul Krugman disses RBC theory and those who study it as unscientific. I’m not an RBC theorist, but I’ll stick up for freshwater macro. Here are some reasons why RBC theory deserves more respect than Krugman gives it. 1. Suppose monetary policy is conducted so that all nominal shocks are perfectly offset. Zero percent of [...]

Tags: , , , , , , , ,
No Comments »

A Picture for Krugman

“The lights are going out all over America—literally.” So begins Paul Krugman’s latest NY Times column, in which he laments the crumbling of America’s foundations. The proximate cause of this decline, according to Krugman, is insufficient government spending on infrastructure and education. But the root cause is rhetoric: How did we get to this point? [...]

Tags: , , ,
6 Comments »