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NYTimes Paul Krugman: ‘zombie fallacies’

July 15, 2013

NYTimes: “Wage-Price Flexibility in a Liquidity Trap, Again Again Again” by Paul Krugman:

One of the frustrating things about macroeconomic discussion since the Great Recession struck is the prevalence of zombie fallacies — misconceptions that one imagines have been killed by logic or evidence, but just keep coming back to eat our brains. Often, maybe usually, politics is what’s keeping these zombies alive; or, if not exactly politics, the attempt of economists to defend their intellectual investments in failed theories. Sometimes, however, the zombies manage to eat a brain or two simply because someone wasn’t paying attention. And I think this is what has just happened to the usually excellent Noah Smith.

Krugman takes issue with Smith’s Keynesian analysis of deflation because, Krugman says “Japan has been in a liquidity trap during the whole period Smith looks at.”

Recall many more Paul Krugman zombies

zombie paul krugman nytimes

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From → economics, politics

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