Tuesday, March 31, 2009

Why Is the Adminstration Keeping Krugman at Arms Length?

I'm not much for Paul Krugman economics. His economics would appear to fit in nicely, though, with the current White House. However, they keep him at a safe distance, and as Krugman himself put it, they aren't making much of an attempt to reach out to him. They are also leaking to reporters that he is naive. What's the deal?

Dean Baker has an interesting theory:

While it is possible that Obama officials actually think that Krugman is naive there are other plausible explanations for their behavior and comments. For example, the Obama administration is closely tied to many top Wall Street executives. It is possible that it is designing its bank policy to serve the interests of Wall Street rather than the country as a whole, as has been argued by people like MIT professor Simon Johnson, the former chief economist at the IMF.

If the Obama administration is actually designing its financial policies to serve the interests of Wall Street, it is unlikely that its top officials would ever admit to this fact. It is far more likely that they would make anonymous complaints to reporters that the people who make such allegations are "naive."

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