Sunday, December 28, 2008

Paul Krugman Give Back Your Nobel Prize

Paul Krugman, the 2008 Nobel Prize winner in economics, is still having trouble with business cycle theory. His rude attitude toward what he calls "Hangover Theory", and clear contempt for anyone that pays attention to it, puts him in the awkward position of dissing the Nobel Academy, since the Academy awarded the Nobel Prize to Friedrich Hayek for, and I quote directly from the The Royal Swedish Academy of Sciences statement announcing Hayek's award:

von Hayek's contributions in the field of economic theory are both profound and original. His scientific books and articles in the twenties and thirties aroused widespread and lively debate. Particularly, his theory of business cycles and his conception of the effects of monetary and credit policies attracted attention and evoked animated discussion. He tried to penetrate more deeply into the business cycle mechanism than was usual at that time. Perhaps, partly due to this more profound analysis, he was one of the few economists who gave warning of the possibility of a major economic crisis before the great crash came in the autumn of 1929.

Here's some of Krugman's rudeness:

So the liquidationists are still with us. According to Brad DeLong,
Milton Friedman would recall that at the Chicago where [DeLong] went to graduate school such dangerous nonsense was not taught
Of course, Hayek's photo is proudly featured at University of Chicago's Gleacher Center along with Friedman's, as University of Chicago Nobel Prize winners (and I personally saw both photos up years ago when Friedman was still alive.)

So the only solution I can come up with for Krugman is to turn in his Nobel Medal (and the award money, especially the money). Afterall, how can he possibly be associated with an institution that awards a Nobel Prize to a theory that he tells us is:

...a theory that I regard as being about as worthy of serious study as the phlogiston theory of fire.
He is saying nothing less than that the Nobel Academy is awarding medals for work on theories equal to nonsense. If he has any self respect, he will return the award, or does he have so little self respect that he needs the adulation from a group he believes is handing out the same award to theories that he believes are not worthy of study?

I have posted three separate comments under Krugman's column (waiting moderation they say), and I replied to Krugman's initial attack on ABCT, here.


  1. Of course it's hard to take this blog seriously. I it really economically necessary to run ads by the "Rich jerk?".
    Krugman can say what he wants. he's a prominent economist, and the lofty do have spirited disagreements. I suppose Krugman will give back his Nobel when you do. What ?... you don't have one?

  2. Those are Google ads, tied to the key words in the post, for whatever reason Google deems it appropriate that Rich Jerk ads appear with Paul Krugman posts.

  3. You know "Dan", your ad hominin attack, instead of addressing the issue, sounds an awful lot like Krugman's style of writing and arguing. Funny that,"Dan", eh?

  4. I saw an ad for Russian beauties when I read your Krugman attack. What's the connection?

  5. Just a little factoid, neither Paul Krugman nor anyone else has a Nobel Prize in Economics since there is no Noble Prize in Economics. Nobel only created awards in Physics, Chemistry, Medicine, Literature and Peace.

    What Krugman has is

    “The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel”


  6. Um. seriously. when you get proof that a theory is bad, you JUNK THE THEORY.
    Friedman's is bunk. Thank Ben for testing it.
    ZIRP! ZIRP! 13% unemployment (U6) and soon to be bigger!