Nice to have a new entrant for my Catch of the Day (hat tipped as always to Jonathan Bernstein) feature. In the New York Times Paul Krugman has spotted a right-wing economist (Art Laffer himself, no less) admitting in public that the austerians, hysterians and all other stripes of anti-Keynsian are quite simply wrong. Definitely worth an honourable mention, particularly given the stature of the guy who said this:
“Usually when you find the model this far off, you’ve probably got something wrong with the model, not that the world has changed,” he said. “Inflation does not appear to be monetary base driven,” he said.
– Business Insider
Austerians take note; that is how you respond to the world proving your politics to be mathematically flawed. And to Professor Krugman, nice catch!