Krugman writes: "In the early stages of the Lesser Depression, those of us who knew a bit about the macroeconomic debates of the 1930s, and realized how relevant the hard-won insights of Keynes and Hicks were to the post-financial crisis world, often felt a sense of despair. Everywhere you looked, people who imagined themselves sophisticated and possessed of deep understanding were resurrecting 75-year-old fallacies and presenting them as deep insights."
Paul Krugman. (photo: Getty)
Artificial Unintelligence
29 August 15
n the early stages of the Lesser Depression, those of us who knew a bit about the macroeconomic debates of the 1930s, and realized how relevant the hard-won insights of Keynes and Hicks were to the post-financial crisis world, often felt a sense of despair. Everywhere you looked, people who imagined themselves sophisticated and possessed of deep understanding were resurrecting 75-year-old fallacies and presenting them as deep insights.
A lot of water has passed under the bridge since then, and I at least no longer feel the same sense of despair. Instead, I feel an even deeper sense of despair � because people are still rolling out those same fallacies, even though in the interim those of us who remembered and understood Keynes/Hicks have been right about most things, and those lecturing us have been wrong about everything.
So here�s William Cohan in the Times, declaring that the Fed should �show some spine� and raise rates even though there is no sign of accelerating inflation. His reasoning:
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