Tuesday, June 29, 2010

Economics is hard

The paper by Kartik Athreya is good stuff.:
http://www.scribd.com/doc/33655771/Economics-is-Hard
He adresses a serious problem: One may call it the Krugmanian confusion. Here you have an economist, Paul Krugman, who earned the so-called Nobel prize in economics yet what he is mainly famous for is a kind of diary for the New York Times. In these contributions he rarely gets things right. Indeed, in almost every piece that he writes, erros, sometimes even grave errors, can be found. Now, so it seems, Kartik wants Krugman and his minor followers to shut up. No, my friend, we won't do that. Krugman is a valuable asset in demostrating how wrong his Keynesian beliefs really are. There is no such thing as "science" in economics, yet, there is scholarship in economics, last represented by Hayek and Mises. Scholarship means knowledge and learning. It is the opposite of what Krugman and his minor compadres such as DeLong and Reich try to sell. Right, Kartik, your analysis is right, but let's not shut down Krugman, let's shut down the Fed.

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