Paul Krugman continues the discussion on the use of the Keynesian model:
Anti-Keynesian Delusions: I forgot to congratulate Mark Thoma on his tenth blogoversary, so let me do that now. ...
Today Mark includes a link to one of his own columns, a characteristically polite and cool-headed response to the latest salvo from David K. Levine. Brad DeLong has also weighed in, less politely.
I’d like to weigh in with a more general piece of impoliteness, and note a strong empirical regularity in this whole area. Namely, whenever someone steps up to declare that Keynesian economics is logically and empirically flawed, has been proved wrong and refuted, you know what comes next: a series of logical and empirical howlers — crude errors of reasoning, assertions of fact that can be checked and rejected in a minute or two.
Levine doesn’t disappoint. ...
He goes on to explain in detail.
Update: Brad DeLong also comments.