Saturday, January 2, 2016

Larry Summers Attacks Paul Krugman

What a great way to start the year, a crony Keynesian attacks another Keynesian.

Larry Summers, former Treasury Secretary and the former president of Harvard University, wrote at his blog on New Year's day, no less:
Paul is certainly correct in his model but I doubt that he is in fact ...the idea that policymakers should in general follow the model and not worry about considerations of market confidence seems to me as misguided as the view that they should be governed by market confidence to the exclusion of models. 
Of course, Krugman's Keynesian models in general are wrong in the first place (SEE: In Review: Paul Krugman's New Book) and all you need to know about Summers is that his models blew up a good portion of the Harvard endowment (SEE:Is a Big Problem Brewing for Larry Summers?) , so this is nothing but the start of a street fight between, as Donald Trump would say, a couple of losers.


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