Paul Krugman:
None So Blind: Eddie Lazear has an op-ed in the WSJ on the fiscal cliff that, among other things, pooh-poohs any concerns that sudden cuts in spending might hurt the economy. He weasels a bit, but basically conveys the impression that there’s no evidence for Keynesian effects. What this signifies to me is the politicization and corruption overtaking the economics profession…. [I]n the midst of a crisis that has both provided overwhelming evidence for Keynesian views of fiscal policy and inspired a great deal of empirical work that also confirms the case for a Keynesian view, the right wing of the profession is just covering its ears and yelling “La, la, la, I can’t hear you.”
Indeed.
Now how do I structure things so that I keep effectively marking my beliefs to market as we learn more about the world and also as the world changes? How do I keep from becoming a crazy old man yelling at the clouds?
