Vindicated: Keynesian Economic Policies

[Puppycow]

How The Other Half Thinks (http://krugman.blogs.nytimes.com/2010/10/02/how-the-other-half-thinks/) By Paul Krugman

The point is that recent events have actually amounted to a fairly clear test of Keynesian versus classical economics — and Keynesian economics won, hands down.

Neener, neener, neener! :hit:

[Tippit]

How The Other Half Thinks (http://krugman.blogs.nytimes.com/2010/10/02/how-the-other-half-thinks/) By Paul Krugman



Neener, neener, neener! :hit:

A brilliant idea just occurred to me. Krugman has repeatedly claimed that we need more, not less government "stimulus", yet his advice has apparently gone unheeded. Why doesn't he move to Zimbabwe, where his ideas will be appreciated? He and Bob Mugabe would make the ultimate stimulus tag team, and Zimbabwe will become even more of the paradise that it already is.

[Sceptic-PK]

Why don't you move to Zimbabwe, since you have such a fear of independent central banks?

[TraneWreck]

A brilliant idea just occurred to me. Krugman has repeatedly claimed that we need more, not less government "stimulus", yet his advice has apparently gone unheeded. Why doesn't he move to Zimbabwe, where his ideas will be appreciated? He and Bob Mugabe would make the ultimate stimulus tag team, and Zimbabwe will become even more of the paradise that it already is.

Because the US and Zimbabwe governments and economies are identical, this point you've made is really, really good.

[ServiceSoon]

You mean to tell me that the conscience of a liberal advocates for more government? Not exactly the twilight zone.

[Tippit]

Because the US and Zimbabwe governments and economies are identical, this point you've made is really, really good.

The difference, is that the American people are highly productive in spite of the Fed's perpetual debasement of the dollar. In terms of purchasing power stolen, the Fed puts Mugabe to shame, but certainly not for lack of effort. Regardless, Krugman and Mugabe are kindred spirits, at least with regard to monetary policy, and hey, have you seen those returns in the Zimbabwe Stock Exchange (http://mises.org/daily/2532)?

[Sceptic-PK]

Ahhhh, good old Mises. The last vestige for people who can't get an economics degree.

[Puppycow]

have you seen those returns in the Zimbabwe Stock Exchange (http://mises.org/daily/2532)?

That was at one point in 2007.
According a news story from 2009 (http://www.moneyweek.com/investments/stock-markets/could-zimbabwes-basket-case-stock-market-rally-250-24738.aspx) however "the share market plunged by 86% in the two months to November" and was later shut down altogether.

It's not surprising that stock prices might rise faster than the rate of inflation for a year or two (as anything was preferable to cash), but the crash was just as steep as the rise.

ETA: And here's another more recent story from 2010 (http://www.businessweek.com/news/2010-03-26/zimbabwe-stocks-have-longest-2010-rally-on-law-review-update1-.html) FYI

[daenku32]

The difference, is that the American people are highly productive in spite of the Fed's perpetual debasement of the dollar. In terms of purchasing power stolen, the Fed puts Mugabe to shame, but certainly not for lack of effort. Regardless, Krugman and Mugabe are kindred spirits, at least with regard to monetary policy, and hey, have you seen those returns in the Zimbabwe Stock Exchange (http://mises.org/daily/2532)?

Mugabe uses charts too? And various economic theories that relate long term bond rates to capability to selling more of them? Who knew!