Paul Krugman: Failures


 

I didn’t see Meet the Press, and there doesn’t seem to be a transcript available yes, but I hear that Paul Ryan declared it a proven fact that Keynesian economics has failed — and was, of course, not challenged on that assertion.

Consider it, if you like, more evidence of the right-wing bubble. Outside that bubble, a fair number of people have noticed that Keynesian economics has performed spectacularly in the crisis — it successfully predicted that deficits wouldn’t drive up interest rates, that monetary expansion wouldn’t be inflationary, that austerity policies in Britain and elsewhere would hit economic growth. And no, don’t tell me that Keynesians predicted that the Obama stimulus would produce full employment; serious Keynesians, like me, were more or less frantically warning back in early 2009 that the stimulus was too small.

But in Ryan’s world everyone knows that Keynesian economics has failed.

Meanwhile, you know what has actually failed? Ryan’s Paulite/Randite monetary economics. You may recall that two years ago Ryan led the charge of Republicans demanding that Ben Bernanke stop his expansionary policies, issuing dire warnings about rising interest rates and soaring inflation. What actually happened:

So, how have Ryan and those of like mind reacted to the spectacular failure of their doctrine in practice? As far as I can tell, they haven’t even acknowledged that they have a problem.

Failures – NYTimes.com

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One Response to Paul Krugman: Failures

  1. Pingback: Rothschild’s Minions : Lenin, Obama, & Sun Yat Sen ~ The Gang Of Counterfeiters! « Political Vel Craft

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