Posts Tagged ‘Football’

So said John Maynard Keynes.  Except that his writings and his understanding of economics is something that we are finding very important these days, and that leads us into some links for today.

  • We start with Krugman, like we often do. Krugman responds to some criticism from Mankiw, but also makes the point that while parts of the economy have changed, and the language of economics has definitely changed, Keynes’s analysis remains very valid today.
  • We have a one-two punch of takedowns on an article that Wall Street Journal that goes after Krugman’s ideas of Keynesian fiscal policy. First, Krugman with the direct rebuttal, and second, Delong pointing out that her argument is totally incoherent.
  • I’ve been calling Mark Thoma’s work “Economist’s View,” and while that’s the blog title, he doesn’t post anonymously. I’ll be changing that in the future, though it’s the same writer. Here is Mark Thoma, then, with a very interesting point. We are working on liquidity, capital, and solvency. What about the information flows that we’re used to? We no longer trust them. Analysts no longer trust numbers coming out of companies, investors no longer trust analysts, and nothing is being done to rectify the situation. It’s a bit long, but well worth the read. He has a great point, and he spells it out much better than the “crisis of confidence” language that some have been using.
  • Two interesting things from Brad DeLong. First, he talks about what he was expecting from the economy and why he didn’t see the current crisis. Second, in a column he talks about the two big mistakes that were made in this crisis. To recap: they let Lehman Brothers fail, and the fed tried to avoid nationalizing all or part of banks. I wish he expanded on his second point more, because I’d like to hear more about why he believes that was the second big mistake, and not any number of other things.
  • The Thrilla in Manila it ain’t, but Krugman talks a bit about the Milton Friedman-Keynes debate on how to look at the Great Depression, and more importantly, how big a role the Federal Reserve and its monetary policy could have had in preventing it. Again, Keynes is looking better and better, while Friedman has taken a solid hit recently.
  • Krugman reminds us that once we’re done with the current crisis, don’t forget to regulate the stuff that got us into it!
  • The Washington Post had a great look back at Paul Volcker and how much he was hated at the time, but as we get farther and farther from his tight interest rate control, how he looks smarter and smarter. Volcker, of course, will chair Obama’s Economic Recovery Advisory Board.
  • Finally, we’ll end on a lighter note: college football. Someone on Deadspin suggests a soccer-style relegation/promotion system be instituted in college football. It’s a fascinating idea that will never happen. One more story from college football. Rhodes Scholar and Florida State Football are being used together to talk about one student. (he got the scholarship) Who ever would have thought that would happen?

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