The resistance of much economic discussion to the facts of the world around us — the facts in front of our noses — is quite extraordinary, particularly if you compare it with what happened in the 1970s. The 70s of legend — the era of stagflation and all that — lasted maybe 7 years, from around 1973 to 1979 or 1980. Yet that stretch of time is constantly cited to this day as having refuted everything we supposedly knew about macroeconomics. So here we are, 40 years later, after six-plus years at the ZLB, with sticky prices and wages all around, etc., etc., and a large number of economic commentators haven’t noticed a thing. krugman.blogs.nytimes/2014/11/28/in-front-of-your-macroeconomic-nose/
Posted on: Sat, 29 Nov 2014 23:55:42 +0000
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