Krugman nails it without saying it explicitly: Freshwater economics is fake, it’s not economics. It’s propaganda paid for by the rich and powerful to convince everyone else that what the rich and powerful want is what we should want too.

July 1, 2012 § 3 Comments

“Recent events have been one empirical debacle after another for that view of the world – on interest rates, on inflation, on the effects of fiscal contraction. But the truth is that freshwater macro has been failing empirical tests for decades. Everywhere you turn there are anomalies that should have had that side of the profession questioning its premises, from the absence of the technology shocks that were supposed to drive business cycles, to the evident effectiveness of monetary policy, to the near-perfect correlation of nominal and real exchange rates.”

http://krugman.blogs.nytimes.com/2012/06/30/macroeconomics-and-the-centrist-dodge/

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§ 3 Responses to Krugman nails it without saying it explicitly: Freshwater economics is fake, it’s not economics. It’s propaganda paid for by the rich and powerful to convince everyone else that what the rich and powerful want is what we should want too.

  • Anonymous says:

    Repeat after me: more government spending, more government spending. There’s nothing quite so magical as increased government spending. Those bureaucrats are absolute geniuses at turning $1 into 50 cents. That is a talent not everyone has.

  • Visible Hand says:

    Isnt Krugman rich and powerful? Doesnt he work for the NY Times?
    More Elizabeth Warren BS from the Invisible Backhane. I wonder if this is really just Elizabeth Warren posting on this site

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