from the emptiness below his chin ?
i do :
"your macro work was all under pinned with bull shit "
pk:
"Saltwater economists in the New Keynesian school — which sort of included me, for instance in my liquidity-trap writing — were doing intertemporal-maximization models that in effect conceded a lot of ground to freshwater styles of analysis"
ain't that the truth !!!!
"... but with distortions — monopolistic competition and sticky prices —"
sooooo ?
umh
"...that made room for demand failures as a cause of recession."
ie made room for reality and its dangers...sort of or almost or ...
okay made room for a reality like danger
without any reality of course
but reality immitated well enough to be a caution
even if easily non heedable in its understatements
or
even if never the less reality WAS never so less reality
but hark
the withering blast:
".. many of the economists doing this stuff
imagined that they were part of a real discourse with the freshwater side"
example
" witness Olivier Blanchard’s The State of Macro, written just before the crisis. Olivier’s abstract declares that
largely because facts do not go away, a largely shared vision......both of fluctuations and of methodology has emerged
and concludes that “the state of macro is good”.
Famous last words."
largely because facts do not go away ?
pk :
"In fact, the freshwater side wasn’t listening at all..
80-year-old fallacies cropped up
as soon as an actual policy response to crisis
was on the table"
and pk again:
" as for changing views in response to facts, well, we all know how that has gone."
krug's narrative suggests fresh water willfull blindness
but what of the salty siders ?
so what is PK's sum up on them ?
on that ...the last is silence
and yet don't it look like his own ties
to the NEW KEYNESIAN
saltness squalidity
are not now
held on to with aplumb ?
not NKism
" sort of included me "
in his credit slump spending contraction
modeled by his NK contrived
eulered up jiggernaut
in hhis popular reports its all
just warmed over hicks
i think he just likes the fun side
of his NK lego world
conjured with the help of his wizards assistant ice cap slim
with wonder land inversions ?
one can't cast ones efforts out easily
