In the years since the financial crisis, central banks across the world have struggled to stimulate adequate aggregate demand. Most mainstream economists agree that this is due to inherent impotence of monetary policy at the zero lower bound, although some, including some central banks, now say that the effective lower bound, though finite, is below zero. The Swiss and Danish central banks are currently testing that idea. [more inside]
Mr. Krugman’s musical reawakening came sometime in early 2011 when Arcade Fire won the Grammy for Album of the Year. Up until that point, as is true with many baby-boomers, he believed that “the great age of modern music ended sometime in the 70s.” Arcade Fire convinced him “that the wonder goes on.” Indeed. [more inside]
"Am I damning with faint praise? Not at all. This is what a successful presidency looks like. No president gets to do everything his supporters expected him to. FDR left behind a reformed nation, but one in which the wealthy retained a lot of power and privilege. On the other side, for all his anti-government rhetoric, Reagan left the core institutions of the New Deal and the Great Society in place. I don't care about the fact that Obama hasn't lived up to the golden dreams of 2008, and I care even less about his approval rating. I do care that he has, when all is said and done, achieved a lot. That is, as Joe Biden didn't quite say, a big deal." Paul Krugman (previously) writes "In Defense of Obama" for Rolling Stone.
Why We’re in a New Gilded Age Paul Krugman reviews Capital in the Twenty-First Century by Thomas Piketty, and discusses the renewal of the importance of capital in preserving inequality across generations.
"[a]ll I can hope is that future historians note that one of the core empirical points providing the intellectual foundation for the global move to austerity in the early 2010s was based on someone accidentally not updating a row formula in Excel." [more inside]
"There are certain novels that can shape a teenage boy's life. For some, it's Ayn Rand's Atlas Shrugged; for others it's Tolkien's The Lord of the Rings. As a widely quoted internet meme says, the unrealistic fantasy world portrayed in one of those books can warp a young man's character forever; the other book is about orcs. But for me, of course, it was neither. My Book – the one that has stayed with me for four-and-a-half decades – is Isaac Asimov's Foundation Trilogy, written when Asimov was barely out of his teens himself. I didn't grow up wanting to be a square-jawed individualist or join a heroic quest; I grew up wanting to be Hari Seldon, using my understanding of the mathematics of human behaviour to save civilisation." [Paul Krugman: Asimov's Foundation novels grounded my economics]
In the spirit of the Nobel season, Yasha Levine discusses the history of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel as a PR gimmick for laissez-faire economics, and how its existence is an affront to the Nobel legacy.
Paul Krugman has really been laying into the hyperinflationists in recent days. And rightfully so... these predictions, as Dr. Krugman notes, were based on a model that is completely wrong. [more inside]
Obama proposes Social Security cuts. Amid ongoing debt talks wherein the Democrats are seeking to raise the debt ceiling to prevent the default of Federal debt, "entitlement reform" has been a hot topic. This morning, Obama has taken the unusual step of proposing even larger spending cuts than Republicans have asked for, mystifying many. Has the Grand Bargain arrived?
What’s Left of the Left - Paul Krugman's Lonely Crusade for Liberalism. After President Obama met with a group of prominent economists in December of 2010, among them Alan Blinder, the latter remarked, somewhat bleakly and apologetically: "In the United States, there is no left left". Paul Krugman is a lonely man. [more inside]
Furthermore, let’s remember that Alderaan isn’t gone. It’s just blown up. Suddenly all the metallic elements that were languishing away in the planetary core are floating around in the void, ripe for the plucking. And anyone who can plausibly claim to have owned them is dead. You can build a lot of Death Stars with that much tungsten. Well, not even a lot—but maybe one.The Overthinking It Think Tank takes a look at “the economic calculus behind the Empire’s tactic of A) building a Death Star, B) intimidating planets into submission with the threat of destruction, and C) actually carrying through with said destruction if the planet doesn’t comply.” [more inside]
"The people who are constantly exasperated about the perfidy and sheer irrationality of the other side is the team that is in fact ill-informed."
Endogenize Ideology: Steve Waldman on the interplay between policy decisions and public opinion, in response to Krugman.
Paul Krugman and Robin Wells have a long two-part essay in the New York Review of Books on the current economic slump. The Slump Goes On: Why? And The Way Out of the Slump.
Since around June 2009 many indicators have been pointing up: GDP has been rising in all major economies, world industrial production has been rising, and US corporate profits have recovered to pre-crisis levels. Yet unemployment has hardly fallen in either the United States or Europe--which means that the plight of the unemployed, especially in America with its minimal safety net, has grown steadily worse as benefits run out and savings are exhausted. And little relief is in sight: unemployment is still rising in the hardest-hit European economies, US economic growth is clearly slowing, and many economic forecasters expect America's unemployment rate to remain high or even to rise over the course of the next year.[more inside]
Building a Green Economy, Paul Krugman on the economics of Climate change.
Paul Krugman attacked professional macroeconomists (previously). John Cochrane, an economist at the University of Chicago, returns the favor, arguing that Krugman deeply misrepresents current economic ideas because he's abandoned economics as a "quest for understanding" in favor of trying to be the "Rush Limbaugh of the Left."
The president of a Savings & Loan sent the following email to his family: If you have one hour of your time to invest in learning more about the current economic crisis, I highly recommend you click on one of the two below links and view [Paul Krugman's Friday address to the National Press Club]. His remarks take about 1/2 hour followed by 25 minutes of Q&As. I believe you will find watching it worth your time. P.S. If you decide to view Krugman's speech, I recommend you view it "full screen" for the best effect of viewing his body language. Link 1, Link 2 [more inside]
Friedman under attack More than 100 faculty at the University of Chicago, where Milton Friedman won the 1976 Nobel Prize in economics, are trying to stop the university from putting Mr. Friedman's name on a $200-million (U.S.) research centre. The opponents argue that the Milton Friedman Institute would compromise the academic integrity of the university and serve as a monument to Mr. Friedman's world outlook, which they say has largely been discredited. [more inside]
"...For his analysis of trade patterns and location of economic activity," the 2008 Nobel Prize in economics has been awarded to New York Times columnist Paul Krugman.
Where no economist had gone before. Paul Krugman posts a type-written paper on interstellar trade which he wrote as "an oppressed assistant professor" in the '70s. I do not propose to develop a theory which is universally valid, but it may at least have some galactic relevance. [pdf link]
Getting rich by getting it wrong How the elite pundits who pushed the war profited in money and prominence, despite being completely wrong. Mean while many pundits who opposed the war from the start were sidelined.
NY Times will be going pay-only for access to columns by Paul Krugman, Thomas Friedman, and Maureen Dowd. On the 19th of Sept! And I assume the others like Herbert and Frank will drop behind the iron curtain as well. These are obviously some of the most blogged about and emailed content on the NYT site. Do you think it will be worth $49.95 year (it does come with 100 archive articles, which is admittedly pretty sweet)? Do you think that bloggers will stop linking to those columnists? Is this the end of free?
Paul Krugman and Daniel Okrent get into a pissing match. In his final column as New York Times ombudsman, Okrent stated that Krugman, the New York Times columnist, "has the disturbing habit of shaping, slicing and selectively citing numbers in a fashion that pleases his acolytes but leaves him open to substantive assaults." The paper gave the two of them some webspace to discuss the matter. The result is catty and entertaining, but the tone is certainly more vicious than I'd expected. They really don't seem to like each other very much.
Haaretz Daily: "This isn't America; the government did not invent intelligence material nor exaggerate the description of the threat to justify their attack." Krugman: So even in Israel, George Bush's America has become a byword for deception and abuse of power. And the administration's reaction to Richard Clarke's "Against All Enemies" provides more evidence of something rotten in the state of our government.
It seems slightly scandalous that Krugman has persisted in noting that the present administration has been moving the lion's share of the money to an array of corporate interests distinguished by the greed of their CEOs, an indifference toward their workers, and boardroom conviction that it is the welfare state that is ruining the country. Krugman has been strident. He has been shrill. He has lowered the dignity of the commentariat. How refreshing. Russell Baker reviews Paul Krugman's The Great Unraveling: Losing Our Way in the New Century. We have now reached a point when even the White House may be forced to sort out how a president who got elected to execute a straightforward business agenda managed to sandbag himself with the coinciding fantasies of the ideologues in the Christian fundamentalist ministries and those in his own administration.... Joan Didion reviews Armageddon: The Cosmic Battle of the Ages by Tim F. LaHaye and Jerry B. Jenkins. The New York Review of Books 40th anniversary edition is an especially good read..
Video of Krugman on Media and Economics
If Bush said the earth is flat, of course Fox News would say "Yes, the earth is flat, and anyone who says different is unpatriotic." And mainstream media would have stories with the headline: "Shape of Earth: Views Differ; and would at most report that some Democrats say that it's round."So said Paul Krugman during a recent interview in Boston with Chris Lydon, former host of NPR's 'The Connection.'
The President "has more familiarity with troubled energy companies and accounting irregularities than probably any previous chief executive." (NYTimes link, reg req'd) Krugman chimes in on Whitehouse outrage to corporate fraud. (See also, Cheney's investigation regarding Halliburton's accounting while he was it's big cheese)
America the Polarized NYT's Paul Krugman says that Congress is polarized because Republicans have moved to the right, while Democrats have remained fairly constant. He (and a political scientist) attribute the change to economic polarization, the sharply widening inequality of income and wealth.
That didn't take long. Thanks to Paul Krugman; it's high time someone disagreed with Bush's wrongheaded fiscal ideas. Bush is going back to fuzzy math to justify another tax cut.