I recently fired a stray shot at Paul Krugman over his joke paper “The Theory of Interstellar Trade” (Krugman 2010), for which I have duly apologized. However in that apology I noted that Krugman has also recently published a draft academic paper presenting a New Keynesian model of debt deflation, “Debt, Deleveraging, and the Liquidity Trap: A Fisher-Minsky-Koo approach” (Eggertsson and Krugman 2010), and I observed that I wish this paper was in fact a joke. Here’s why (this is a modified extract from my forthcoming second edition of Debunking Economics, which will be published by Zed Books in about September or October this year).
Support me on Patreon
Do your MA in Economics at KingstonKingston offers a range of Economics MA degrees from heterodox, pluralistic and applied perspectives, full time and part time. Click here for more information
The New Depression
Debunking Economics II
This site does not give personal financial advice. The focus of this blog is economic analysis, and how you interpret this with respect to your own financial decisions is entirely up to you.
Steve Keen, Debtwatch, and any employees or associates will not be held liable for any losses resulting from decisions taken by any individual or entity as a consequence of reading materials on this blog.
Membership or sponsorship of this blog does not constitute purchasing any product service apart from those listed in the membership and sponsorship conditions.