Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Well, Krugman is the one who seems to think that the graph describe's 'Spain's problem', so I don't see why you're blaming me, and not him, for making this a moral issue.

As for inflation - inflation is a construct of neo-classical economics, and not a reality. Real inflation, which includes value-destroying bubbles, is often driven by neo-classical policies, and yet remains oddly blind to their influence on actual prices and spending.

As we've noted many times on here, asset appreciation is classed as profit, even though it makes goods and services less affordable to a majority of spenders, while wage increases are classed as lossy and 'inflationary', even when they make goods and services more affordable to the majority of spenders, and increase overall money velocity.

This is why hardly anyone here takes neo-classical theory seriously any more - and also why it's a shame to see someone like Krugman apparently trying to make the same old discredited talking points.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Feb 15th, 2010 at 03:07:59 PM EST
[ Parent ]
This is why hardly anyone here takes neo-classical theory seriously any more - and also why it's a shame to see someone like Krugman apparently trying to make the same old discredited talking points.

"Spain's Problem".
He has no idea whatsoever about "Spain's Problems", because he views Spain from a distance, darkly, through lenses deeply colored some pale shade of red/white/blue econothink.. And he sees a bit of an economic cartoon. A caricature of Spain. That IS the Amerocentric viewpoint.
That said, Dr. Krugman does far better than most of his peers at making a real effort to transcend the limits of his perspective.  His blog suggests that it aint easy. That's the scary part.
Even Paul Krugman.  

Capitalism searches out the darkest corners of human potential, and mainlines them.
by geezer in Paris (risico at wanadoo(flypoop)fr) on Thu Feb 18th, 2010 at 12:24:29 AM EST
[ Parent ]

Display:

Occasional Series