the sad state of macroeconomics

Travel and jet lag have conspired to prevent me from commenting in opportune fashion on Paul Krugman’s long essay that was published in last Sunday’s New York Times Magazine. There is nothing new here, but the essay is well-written, in classic Krugman style, so very accessible to non-economists. Krugman covers a lot of ground, from Adam Smith to Keynes, to the New Classical and the New Keynesian schools. Do read the entire essay if you haven’t done so already. Even Greg Mankiw recomends it.

[B]elief in efficient financial markets blinded many if not most economists to the emergence of the biggest financial bubble in history. And efficient-market theory also played a significant role in inflating that bubble in the first place.


[E]conomists who inveighed against the stimulus didn

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One Response to “the sad state of macroeconomics”

  1. […] Alex Rosenberg is commenting on Chicago economist John Cochrane’s response to Paul Krugman’s New York Times essay on the failures of […]