>

Krugman Answers Keen

March 19th, 2013
in econ_news, syndication

Econintersect:  Australian economist Steve Keen recently wrote an extended analysis critical of Paul Krugman's use of the IS-LM model which was published in two parts by Global Economic Intersection.  (See Sources, end of this article.)  Krugman has written a brief rebuttal posted today (19 March 2013) in The New York Times.  His title indicates he thinks the discussion is not important.  His concluding statement indicates he thinks the discussion is ended:

So can we get back to serious stuff?

shouting-two

Follow up:

Global Economic Intersection contributor Dirk Ehnts of the Berlin School of Economics and Law finds the discussion leaves him confused and thinks there is some serious stuff involved. Ehnts comes down to a conclusion that Keen (disequilibrium) and Krugman (equilibrium) are living in two different universes. Ehnts says:

I always interpreted the IS/LM model as one of comparative statics. You can only compare equilibria, dynamics are not modeled, neither from non-equilibrium to equilibrium nor from one equilibrium to another.

It appears that Ehnts doesn't think the discussion is over.  Perhaps it hasn't even begun.

Sources:









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















Proud contributor to:


Finance Blogs
blog

Econintersect Website Search:

Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2015 Econintersect LLC - all rights reserved