Showing posts with label Krugman macro micro structuralist. Show all posts
Showing posts with label Krugman macro micro structuralist. Show all posts

Monday, March 25, 2013

IS-LM is bad economics no matter what Krugman says


"There is nothing in the post-General Theory writings of Keynes that suggests him considering Hicks’s IS-LM anywhere near a faithful rendering of his thought. In Keynes’s canonical statement of the essence of his theory in the 1937 QJE-article there is nothing to even suggest that Keynes would have thought the existence of a Keynes-Hicks-IS-LM-theory anything but pure nonsense. So of course there can’t be any “vindication for the whole enterprise of Keynes/Hicks macroeconomic theory” – simply because “Keynes/Hicks” never existed..." (see rest here)

Friday, August 26, 2011

C'mon, Paul, you can get there!

Professor Krugman seems to be undergoing an (structuralist?) epiphany. Or at least admitting it in public.

What am I talking about? My perception of his movement toward recognizing macro foundations as the driving force in reality and any model that presumes to approximate it.

Evidence?

This piece, in which he says "pah...all that micro trade theory doesn't have anything to do with reality." He doesn't really say that, I am imputing that. Here's what he did say "The case for free trade is about microeconomics, about raising efficiency. There’s no particular reason to think that trade liberalization is good for fixing problems of inadequate demand."

And this piece, (which I promise to find) in which he admits to becoming increasingly interested in macro somewhere in the 90's.

And he's almost there...,almost as in this piece, where he, among others, takes Barro to task for his ridiculous labeling of micro as "regular economics," implying that, well, read the piece.

So, Paul, keep going, you are on the road to the promised land. We're really happy that you got your Nobel for micro trade theory...that wonderful event appears to have freed you to follow the path of truth. Now just take the final step and follow Vernengo et al. into explaining microeconomics using macro foundations.Link

Was Bob Heilbroner a leftist?

Janek Wasserman, in the book I commented on just the other day, titled The Marginal Revolutionaries: How Austrian Economists Fought the War...