'The Case of the Missing Minsky'

Paul Krugman says I'm not upbeat enough about the state of macroeconomics:

The Case of the Missing Minsky: Gavyn Davis has a good summary of the recent IMF conference on rethinking macro; Mark Thoma has further thoughts. Thoma in particular is disappointed that there hasn’t been more of a change, decrying

the arrogance that asserts that we have little to learn about theory or policy from the economists who wrote during and after the Great Depression.

Maybe surprisingly, I’m a bit more upbeat than either. Of course there are economists, and whole departments, that have learned nothing, and remain wholly dominated by mathiness. But it seems to be that economists have done OK on two of the big three questions raised by the economic crisis. What are these three questions? I’m glad you asked. ...[continue]...