Saturday, June 6, 2015

Krugman Thinks Well.

Below is an excerpt, but the entire post is good and only a few additional paragraphs beyond the ones shown. Krugman's critical thinking skills are what are impressive here, not his actual economics one way or the other.

Make claims. Support them with evidence. Analyze and evaluate your own views and beliefs as needed.

Why Am I A Keynesian? - NYTimes.com
So, am I a Keynesian because I want bigger government? If I were, shouldn’t I be advocating permanent expansion rather than temporary measures? Shouldn’t I be for stimulus all the time, not only when we’re at the zero lower bound? When I do call for bigger government — universal health care, higher Social Security benefits — shouldn’t I be pushing these things as job-creation measures? (I don’t think I ever have). I think if you look at the record, I’ve always argued for temporary fiscal expansion, and only when monetary policy is constrained. Meanwhile, my advocacy of an expanded welfare state has always been made on its own grounds, not in terms of alleged business cycle benefits. 
In other words, I’ve been making policy arguments the way one would if one sincerely believed that fiscal policy helps fight unemployment under certain conditions, and not at all in the way one would if trying to use the slump as an excuse for permanently bigger government. 
But in that case, why am I a Keynesian? Maybe because of convincing evidence?

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