Friday, May 6, 2011

Dr. Krugman's current post on his blog. I'm sure there will be more today. - please follow link, etc., etc., etc.
-------------------------------------------------

The Republican Descent Into Economic Darkness

Ryan Avent listens to Paul Ryan’s ideas on macroeconomic policy, and is appalled: it’s all spending cuts and tight money, which would be a recipe for another recession.

I don’t know whether Avent was really surprised by this — if so, he hasn’t been paying attention. 1930-vintage macro has been all the rage in GOP circles for a while now.

But not, actually, for all that long. Here’s a snip from the table of contents for the 2004 Economic Report of the President:
DESCRIPTIONEconomic Report of the President, 2004




Aggressive monetary policy is good? What would Ron Paul say? And the bit about tax cuts, although it makes a deferential nod to supply side dogma, is mainly a more or less straight Keynesian argument for increasing aggregate demand.

To be sure, this is Greg Mankiw writing; but still, look at what he was allowed to say.

I’ve been writing for a couple of years about the academic descent into a Dark Age of macroeconomics, in which much of the profession has forgotten things they used to know. But that has been a gradual process. The GOP descent into the intellectual abyss, by contrast, has been stunningly swift.

Some of this is just partisanship: wanna bet that, say, John Taylor would be a lot more sympathetic to expansionary policies if his party held the White House? But the truth — which I suspect that people like Greg aren’t willing to face, yet — is that the intellectual barbarians have completely overrun a party that even a few years ago was still capable of making sense

No comments: