Monday, November 26, 2018

22 Days in Paul Krugman's Masterclass (Day 8) (Boring, Almost Fell Asleep)

Lesson 8 in Paul Krugman's Masterclass is 9 minutes and 2 seconds long.

It is by far Krugman's most boring lesson.

He starts with the erroneous foundation that the 2008 financial crisis led to a "liquidity trap,| and therefore he jumps to the Keynesian notion that the government must increase spending. Yawn.

He also said that crises "probably can't be prevented." This is totally absurd. The Fed just needs to stop manipulating the money supply and interest rates, which create the boom-bust business cycle. See: Austrian School Business Cycle Theory.


Links to discussions of all Krugman's Masterclass lessons are here.

1 comment:

  1. The secret weapon of the Keynesian: boredom. When you can't make a logical argument, just bore them to death.