WITH THE ACADEMIC EQUIVALENT OF A GHOST WRITER

Paul Krugman attempts to play in the big leagues. Quotable:

There is a lot of relevant work that Eggertsson and Krugman are unaware of, or are ignoring. Bruce Smith spent his career working on models of credit market frictions in monetary frameworks. I [Stephen Williamson] have work closely related to Bernanke-Gertler, and predating it (including my 1987 JPE paper). Many people have studied related debt-constrained problems. These include Kehoe and Levine (1993) and Kocherlakota (1996). There is a large literature that uses standard incomplete markets models (e.g. Aiyagari QJE 1993) to study problems associated with bankruptcy.

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One Response to WITH THE ACADEMIC EQUIVALENT OF A GHOST WRITER

  1. Daniel Kuehn says:

    Are you refering to Eggertsson with that title? Why are you so accepting of Williamson’s claim? I found the claim that “He’s [Eggertsson’s] supplying the New Keynesian technology to help Krugman to flesh out his thinking” both implausible sounding and completely unsupported by Williamson.

    Why aren’t you more skeptical, Greg?

    Why not entertain the prospect that Stephen is just taking a pot-shot?

    Krugman does say that the expertise Eggertson brings is on modeling the zero lower bound, but that’s very different from (and far more narrow than) saying that Krugman needed Eggertson to do the New Keynesian modeling or act as a “ghost writer”.

    The citations he provides are interesting, but don’t really address the problem in a liquidity trap, which is the whole point of the paper (Krugman and Eggertson do cite Bernanke and Gertler by the way, although they don’t seem to cite the others he lists… but why would they? Debt dynamics outside of liquidity trap are fairly understood and they’re not what’s being considered here).

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