Oh My, Paul Krugman

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Q: What do John May­nard Keynes and Steve Keen have in com­mon?

A: They’ve both been mis­read by Paul Krug­man.

In just a cou­ple of days I’ve gone from the priv­i­lege of being acknowl­edged by Krug­man to being mis­read by him, in a way that would have any stu­dent failed in a mul­ti­ple choice exam. In a pas­sage where I specif­i­cal­ly referred to DSGE models–which includes both “New Clas­si­cals” and “New Key­ne­sians” he inter­pret­ed me as refer­ring to New Key­ne­sian mod­els only.

And I said “under­ly­ing prin­ci­ples to the DSGE mod­els”, which should have been enough of a clue that I was refer­ring specif­i­cal­ly to New Clas­si­cal mod­els, not New Key­ne­sian ones.

The dis­parag­ing ref­er­ences to New Key­ne­sian mod­els came lat­er, when I described them as being like Ptole­ma­ic astronomers adding epicy­cles to an under­ly­ing mod­el that could­n’t explain the ret­ro­grade motion of the plan­ets.


Then hav­ing mis­read me, he con­cludes with “Nick uses a four-let­ter word to describe this; I can’t, because this is the Times”

Since I don’t work for The Times, I can and will use a four let­ter word to describe your poor com­pre­hen­sion here Paul:


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About Steve Keen

I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.