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:


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.
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33 Responses to Oh My, Paul Krugman

  1. Leadbelly says:

    Philip Pilkington chimes in.
    Nobel Laureate Paul Krugman selectively quotes rival to stitch him up after losing argument.


  2. barrythompson says:

    Nick Rowe admits his mistake:

    Nick Rowe on April 3, 2012 at 4:49 am said:

    Just for the record: I did not email Paul Krugman. That’s not what “Nick Rowe sends me to…” means. Any “communication” between me and Paul Krugman is right there on the blogs.

    Yep, I learned later that Steve Keen had partly qualified what he had written a few paragraphs further down. I should probably have kept reading rather than getting mad at that point, stopped reading, and firing off my comment.


  3. barrythompson says:

    Krugman apologises too.

    Update update: Ah, so Keen didn’t mean DSGE — a term that refers only to New Keynesian models — when he said DSGE; he meant New Classical, which he somehow regards as the underlying principles for models that aren’t New Classical at all. OK. Anyway, enough of that. I’m all for listening to heretics when they offer insights I can use, but I’m not finding that at all in this conversation, just word games and continual insistence that the members of the sect have insights denied to us lesser mortals. Time to move on.

  4. Steve Keen says:

    Where did he write that Barry?

  5. barrythompson says:

    On his ‘Oh My’ blog post.

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