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Mondays With Murray: The Death Of Keynesian Economics

Why would a noble prize winner ignore a fundamental question regarding the basis of the economic philosophy he has spent his life defending? Could it be because this famous economist and New York Times Op-Ed columnist is unable to provide an answer? This situation occurred last weekend when Paul Krugman was challenged by Mish Shedlock to answer a simple, childlike question regarding the basic fundamentals of Keynesian Economics.

Economic Policy Journal’s Robert Wenzel posted a summary of the initial challenge. EPJ linked to the article written by Mish Shedlock that issued the challenge and also included Krugman’s evasive response to the basic philosophical question. In his article, Mish linked to a video of economist Hans Hermann-Hoppe, which I have included below.

Han-Hermann Hoppe encourages Austrian Economists to not get tricked into being bogged down by detailed, micro economic questions when debating Keynesians. He advises to keep it simple and insist Keynesians explain how an increase in paper pieces can make a society richer. Ask them to explain, if this is true, why do we have poverty in the world? If every central bank is capable of creating prosperity via the printing press, why does not every country with a central bank enjoy prosperity? It would be fair to assume that Krugman would jump at the opportunity to answer such a simple, direct question. Right?

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Krugman

Krugman did later make a (feeble) attempt at answering the question, albeit in mostly non-answer form.

http://www.economicpolicyjournal.com/2013/02/krugman-tries-a...

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That was

More weakness from Krugman

Krugman

May in fact be the antichrist. I hate that man with a passion.