For My Krugman File

Paul Krugman writes:

Now, as I’ve tried to say on a number of occasions, mistakes happen. If you, as an economist, try to weigh in on events as they happen, you will get things wrong, and sometimes you may get them wrong in a big way. The crucial question is what you do next. Do you engage in self-analysis, trying to figure out what in your framework led you astray? Or do you double down on your preconceptions, refusing to admit that you may have gone up the wrong path (and, if you’re in an institutional position, try to shut out people with differing views)?

This will be fun to pull out when price inflation soars well above 2%, which is where it is at now according to Krugman's favorite price inflation indicator, the MIT Billion Prices Index. Krugman, of course, thinks there is no price inflation threat and is calling for even more Fed money printing:

[T]here are very high costs to premature policy tightening, which can raise unemployment in the long as well as the short run. Since we don’t really know where full employment is — and since there’s a case for a higher inflation target anyway — this adds up to a strong argument for waiting to see overwhelmingly clear evidence of an overheated economy before beginning any kind of policy exit.

So Janet Yellen should keep her petal peddle pedal to the medal mettle metal for a long time.

Will he admit he was wrong? Will he engage in self-analysis? Will he read Rothbard?