Monday, December 17, 2012

pk skates near the abyss

does here  pk hear  the call

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