tag:blogger.com,1999:blog-6276561747841568697.post1411351329435091489..comments2024-03-27T05:23:48.855-04:00Comments on Krugman-in-Wonderland: Can Krugman Explain the 1983 Recovery?William L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6276561747841568697.post-8651343118528279522010-06-05T17:56:07.210-04:002010-06-05T17:56:07.210-04:00Thanks for the letter. Hmm, I think it might be us...Thanks for the letter. Hmm, I think it might be useful for a future post.<br /><br />I have written some long and detailed pieces on the Tonya Craft case on my other blog, which is why I have not posted on here in a few days.William L. Andersonhttps://www.blogger.com/profile/01802990642236807359noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-39153469558269804942010-06-04T14:17:00.578-04:002010-06-04T14:17:00.578-04:00I don't think anyone has made the argument tha...I don't think anyone has made the argument that the deficits fueled the economy of the 80s. Keynsians believe large deficit spending is only appropriate when we're in a liquidity trap and interest rates are zero bound, as it was in the Great Depression and it is now. Interest rates were purposely set by high by Volcker to stop massive inflation causing high unemployment, but lowering it after is what caused the majority of the recovery.<br /><br />The Philips curve only works in the short run, but not in the long run. This distinction wans't made in the 70s.<br /><br />Look up NAIRU. <br />http://en.wikipedia.org/wiki/Phillips_curveThisguyhttps://www.blogger.com/profile/07109138697803215136noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-26340744441517686862010-06-04T13:56:01.111-04:002010-06-04T13:56:01.111-04:00Wow, that was great! I'm very new to all of th...Wow, that was great! I'm very new to all of this. Looking to go into business economics after I finish my gen ed. This is so incredibly interesting to me, I can't wait to see more.Unknownhttps://www.blogger.com/profile/05391405684677659282noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-9767313704455671362010-06-04T10:50:30.681-04:002010-06-04T10:50:30.681-04:00I wonder how many times Kenseians will be proven w...I wonder how many times Kenseians will be proven wrong before they give up....Unknownhttps://www.blogger.com/profile/01903286975335200551noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-70346509465089154272010-06-04T04:24:58.742-04:002010-06-04T04:24:58.742-04:00I think the problem here is that you still think K...I think the problem here is that you still think Keynesians still use the Philips Curve in its old form.Thisguyhttps://www.blogger.com/profile/07109138697803215136noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-46454235798018137932010-06-03T22:42:36.234-04:002010-06-03T22:42:36.234-04:00Bill, if you want to see a real laugh piece, check...Bill, if you want to see a real laugh piece, check out Krugman and Larry Summers letter to the Fed in 1983 predicting a return of double digit inflation due to the economic recovery.<br /><br />http://www.pkarchive.org/economy/KrugmanSummersCEAInflation1983Recovery090982.pdfBenhttps://www.blogger.com/profile/16161611927349207978noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-13269646893051694672010-06-03T22:37:06.677-04:002010-06-03T22:37:06.677-04:00This comment has been removed by the author.Jessehttps://www.blogger.com/profile/07797362276163462905noreply@blogger.com