Saturday, June 12, 2010

Surely he would tell us

A follow-up to my "Credit Efficiency" post... which I said that if Paul Krugman knew why the high level of debt after World War II turned out not to be a problem, he would tell us.

Krugman confronts problems by presenting other problems, stirring up a little confusion, and saying the other guy is wrong. It is entertaining, but it doesn't solve the problems.

But Krugman is not the only one who doesn't know how to solve economic problems. Hafer and Wheelock don't know, either. Their approach is to claim that monetary policy doesn't work, except maybe in the short term.

Other economists claim that fiscal policy doesn't work. But that's all we have, you know, monetary and fiscal policy. If economists can't make them work, they should go into some other line of work.

These guys are plain out of ideas.

1 comment:

Dredd said...

Hey "The Arthurian",

How goes it?!

The word "economics" comes from "oikos" and "nomos" meaning the "law of the dwelling" ...

The current U.S. version of that meaning is explained on this blog post.

I am sure you have covered it very well too.

Keep up the good work.