UPDATE II: “Well, it seems that Paul Krugman is taking on F.A. Hayek, but, as usual, Krugman really has no idea as to what Hayek was saying in 1932, and what Austrians are saying now.” Read the whole thing.
Read also this.
It’s rather an embarrassment for Paul Krugman that he’s never heard of these letters, isn’t it?
Or that Krugman had no idea that the “Keynesian policy” pre-dates 1936? Any economist remotely informed about the history of economic thought knows this stuff.
One wonders how anyone continues to take seriously a man so poorly educated in the domain he wishes to preach like a crazed oracle from God.
BONUS: Keynes and the Klassics: The Macroeconomic Creation Myth (pdf) [how Keynes smeared Pigou].
Update — Krugman has confessed that he can’t bring himself to study any economics explained in prose and published prior to graduate school years (pathetic, yes, but he said it, I didn’t).
Well, I’d suggest it’s time Krugman sent himself to remedial summer school. Here are three books in English I’d suggest he force himself to learn:
1. David Laidler, Fabricating the Keynesian Revolution.
2. Steven Kates, Say’s Law and the Keynesian Revolution.
3. Roger Garrison, Time and Money.