Paul Krugman’s blind spots

Most economists will agree that Paul Krugman has at least one blind spot. Disagreement arises about what that spot is, while some perhaps can’t see the Paul through the spots.

In my analysis Paul’s blind spot basically concerns DRGTPE.

DRGTPE contains a section about Krugman so that I don’t have to repeat that analysis here. You can download the PDF and check it out, see page 222+. Overall, Krugman has less insight in the failure of the Trias Politica and the impact of taxation on unemployment and the shift of the Phillipscurve. In this crisis Krugman rightly points to the state of aggregate demand but alongside monetary stimulus DRGTPE assigns an important role to investment banks.

We’ll see what happens when professor Krugman finds time to read the book.

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