Krugman’s Got the Disease

31 December 2008 at 1:23 am 4 comments

| Peter Klein |

Paul Krugman suffers increasingly from what might be called Stiglitz’s Disease, the inability to read (or cite) anyone but oneself. Some years ago Krugman wrote a rather silly and superficial piece on the Austrian theory of the business cycle, which he called the “hangover theory” of recessions. Krugman’s essay provoked strong reactions from Roger Garrison, John Cochran, David Gordon, and Bob Murphy, all of whom have considerable expertise regarding this particular theory. Naturally, Krugman didn’t read any of these responses because they weren’t written by, well, Paul Krugman. So, a couple of days ago, Krugman again trots out his “hangover” metahpor, oblivious to the fact that his original essay got the Austrian theory completely wrong. Ah, the joys of being a full-time dilettante!

Entry filed under: - Klein -, Austrian Economics, Myths and Realities, People.

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4 Comments Add your own

  • 1. Ryan Lanham  |  31 December 2008 at 11:06 am

    When oh when will this Austrian whining and whimpering about their supposed lack of respect and value end? It was some sloppy thinking that’s mostly 60 years old. Get over it.

  • 2. simone  |  31 December 2008 at 11:31 am


    While you may or may not have a point, your failure to note Krugman’s sloppy thinking leaves one wondering.

  • 3. Marc Benoit  |  31 December 2008 at 4:51 pm

    Dilettante is diplomatic. Know-it-all perhaps more fitting.

  • 4. David Hoopes  |  8 January 2009 at 11:41 pm

    I don’t think the Austrians are whiners. I think they’ve been shown to be on much more solid ground than other more passing fancies.

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