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Saturday, June 06, 2015

'Views Differ on Shape of Macroeconomics'

Paul Krugman:

Views Differ on Shape of Macroeconomics: The doctrine of expansionary austerity ... was immensely popular among policymakers in 2010, as the great turn toward austerity began. But the statistical underpinnings of the doctrine fell apart under scrutiny... So at this point research economists overwhelmingly believe that austerity is contractionary (and that stimulus is expansionary). ...

Nonetheless, Simon Wren-Lewis points us to Robert Peston of the BBC declaring

I am simply pointing out that there is a debate here (though Krugman, Wren-Lewis and Portes are utterly persuaded they’ve won this match – and take the somewhat patronising view that voters who think differently are ignorant sheep led astray by a malign or blinkered media).

Wow. Yes, I suppose that “there is a debate” — there are debates about lots of things, from climate change to evolution to alien spaceships hidden in Area 51. But to suggest that this debate is at all symmetric is just wrong — and deeply misleading to one’s audience.

As for the claim that it’s somehow patronizing to suggest that voters are ill-informed when (a) macroeconomics is a technical subject, and (b) the media have indeed misreported the state of the professional debate — well, this is sort of an economic version of the line that one must not suggest that the Iraq war was launched on false pretenses, because this would be disrespectful to the troops. If you’re being accused of misleading reporting, it’s hardly a defense to say that the public believed your misinformation — more like a self-indictment. ...

    Posted by on Saturday, June 6, 2015 at 10:58 AM in Economics, Macroeconomics, Press | Permalink  Comments (17)


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