How the Case for Austerity Has Crumbled by Paul Krugman | The New York Review of Books


 

In normal times, an arithmetic mistake in an economics paper would be a complete nonevent as far as the wider world was concerned. But in April 2013, the discovery of such a mistake—actually, a coding error in a spreadsheet, coupled with several other flaws in the analysis—not only became the talk of the economics profession, but made headlines. Looking back, we might even conclude that it changed the course of policy.

The Reinhart-Rogoff debacle has raised some hopes among the critics that logic and evidence are finally beginning to matter. But the truth is that it’s too soon to tell whether the grip of austerity economics on policy will relax significantly in the face of these revelations. For now, the broader message of the past few years remains just how little good comes from understanding.

How the Case for Austerity Has Crumbled by Paul Krugman | The New York Review of Books

This entry was posted in Austerity, Macroeconomics, Paul Krugman. Bookmark the permalink.

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