can we kill the NK's too ?

just thinkin....

death to the micro confounders school of macro

they justified the necessary class based
70's  fuck  up
            of K school fiscal activism

but now they go down for the count



social facts are stubborn and social motions  rebellious

oh those poor poor fresh water boys
   in the end  Clio
laid
 a nice fat  sap
   across  the back of their  necks

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

export drive ....petering

self tuning output controls..... adaptive control

 

if there existed a corporate vatican that outfit couldn't get this better then the tax al qaeda gets it here:

buried headline:

" the revenue maximizing capital gains tax rate, which appears to be a bit under 10 percent "



"Many types of tax changes move revenues in the normal direction predicted by static analysis.

 Tax rate increases raise revenues; tax rate reductions reduce revenues.

 They do not alter economic growth and incomes enough to completely offset their projected revenue gains or losses.


 For example,

 across-the-board income tax rate reductions
 recover only about a third of their static revenue losses with additional growth

 (while adding more than $2 to people’s pre-tax incomes for each dollar of revenue loss to the government).

 Likewise,
excise taxes, sales taxes, and payroll taxes
 are generally not over the revenue-maximizing hump of the Laffer curve.


Nonetheless,

 some tax reductions (or increases) are unusually effective in raising (lowering) incomes and recovering (losing) revenues.

Capital formation is highly sensitive to after-tax earnings.

 Some tax changes that aim directly at capital formation
 can trigger enough of a change in
  the stock of buildings,
 the amount of equipment,
 and the hiring of workers
to utilize them to come close to, or even more than offset, the initial revenue change.

 These include
 reductions in
 the estate tax
and steps that offset some of the double taxation of corporate income,
 including lower corporate tax rates and lower taxes on capital gains
 (which hit retained after-tax corporate earnings)
 and dividends (which are paid out of after-tax corporate earnings).

 Raising these taxes can often be entirely counter-productive."

great label : " service price of capital "

capital is a well paid servant indeed
                                  of the  producing citizenry