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Paul Krugman: 212 quotes1 like

“Economists, like everyone, have their political biases, but these are by no means as strong an influence on what they are willing to consider as you might think. For example, one might have thought that strongly liberal economists like, say, James Tobin would be at least mildly sympathetic to the views of radical economists who draw their inspiration from Marx, or of heterodox economic thinkers like Galbraith. After all, in such fields as history and sociology the Marxist or post-Marxist left has long received a respectful hearing. And yet you don't find this happening: liberal economists are almost as quick as their conservative colleagues to condemn heterodox leftist ideas as foolish it was the liberal Robert Solow, not Milton Friedman, who defended orthodoxy in the bitter "capital controversy" with British radicals.”

Paul Krugman

Development, Geography, and Economic Theory (1995), Ch. 1. The Fall and Rise of Development Economics

“Like any major intellectual contribution, Keynes's ideas were bitterly criticized. To many people it seems obvious that massive economic slumps must have deep roots. To them, Keynes's argument that they are essentially no more than a problem of mixed signals, which can be cured by printing a bit more money, seems unbelievable.”

Paul Krugman book Peddling Prosperity

Source: Peddling Prosperity (1994), Ch. 1 : The Attack on Keynes

“A temporary evolution of ignorance, a period when our insistence on looking in certain directions leaves us unable to see what is right under our noses, may be the price of progress, an inevitable part of what happens when we try to make sense of the world's complexity.”

Paul Krugman

Development, Geography, and Economic Theory (1995), Ch. 3. Models and Metaphors

“One interesting footnote: although Friedman made great strides in macroeconomics by applying the concept of individual rationality, he also knew where to stop. In the 1970s, some economists pushed Friedman’s analysis of inflation even further, arguing that there is no usable trade-off between inflation and unemployment even in the short run, because people will anticipate government actions and build that anticipation, as well as past experience, into their price-setting and wage-bargaining. This doctrine, known as “rational expectations,” swept through much of academic economics. But Friedman never went there.”

Paul Krugman

"Who Was Milton Friedman?", The New York Review of Books (February 15, 2007)
The New York Review of Books articles

“Things could have been even worse. This week, we managed to avoid driving off a cliff. But we’re still on the road to nowhere.”

Paul Krugman

Regarding the last-minute deal that ended the 2013 U.S. government shutdown just before the U.S. defaulted on its debt
[Paul Krugman, http://www.nytimes.com/2013/10/18/opinion/krugman-the-damage-done.html?ref=opinion&_r=1&, The Damage Done, New York Times, October 18, 2013, October 18, 2013]
The New York Times Columns

“The appeal to the intellectually insecure is also more important than it might seem. Because economics touches so much of life, everyone wants to have an opinion. Yet the kind of economics covered in the textbooks is a technical subject that many people find hard to follow. How reassuring, then, to be told that it is all irrelevant -- that all you really need to know are a few simple ideas! Quite a few supply-siders have created for themselves a wonderful alternative intellectual history in which John Maynard Keynes was a fraud, Paul Samuelson and even Milton Friedman are fools, and the true line of deep economic thought runs from Adam Smith through obscure turn-of-the-century Austrians straight to them.”

Paul Krugman

"Virus Strikes Again", Originally "Supply-Side Virus Strikes Again: Why there is no cure for this virulent infection" http://web.mit.edu/krugman/www/virus.html, undated draft at web.mit.edu of a "The Dismal Science" column for Slate The Accidental Theorist: And Other Dispatches From The Dismal Science (1998)

“It’s a tribute to the importance of Friedman’s work that questions about his legacy bear so directly on contemporary policy issues. But for that reason it’s also important not to engage in hagiography. Friedman was a great economist, but like every other great economist in history, he was also wrong about some important things.”

Paul Krugman

Response to Nelson and Schwartz, Journal of Monetary Economics 55 (2008)

“If the question is when markets will recover, a first-pass answer is never.”

Paul Krugman

Prediction in the aftermath of Donald Trump's presidential election victory. Markets recovered the following day. The Economic Fallout https://www.nytimes.com/interactive/projects/cp/opinion/election-night-2016/paul-krugman-the-economic-fallout (November 9, 2016) The New York Times Columns

“So let's start telling the truth: competitiveness is a meaningless word when applied to national economies. And the obsession with competitiveness is both wrong and dangerous.”

Paul Krugman

Pop Internationalism (1996), Competitiveness: A Dangerous Obsession (1994)

“Many liberals have changed their views in response to new evidence. It’s an interesting experience; conservatives should try it some time.”

Paul Krugman

[Paul Krugman, http://www.nytimes.com/2015/07/17/opinion/paul-krugman-liberals-and-wages.html, Liberals and Wages, New York Times, 17 July 2015, 17 July 2015]
The New York Times Columns

“We’re now in the seventh year of a slump brought on by Wall Street excess; the wizardly job of “allocating the economy’s investment resources” consisted, we now know, largely of funneling money into a real estate bubble.”

Paul Krugman

"Iron Men of Wall Street" http://krugman.blogs.nytimes.com/2014/02/16/iron-men-of-wall-street/, 16 February 2014 The Conscience of a Liberal blog

“The legend of King Midas has been generally misunderstood. Most people think the curse that turned everything the old miser touched into gold, leaving him unable to eat or drink, was a lesson in the perils of avarice. But Midas’s true sin was his failure to understand monetary economics. What the gods were really telling him is that gold is just a metal. If it sometimes seems to be more, that is only because society has found it convenient to use gold as a medium of exchange—a bridge between other, truly desirable, objects. There are other possible mediums of exchange, and it is silly to imagine that this pretty, but only moderately useful, substance has some irreplaceable significance.”

Paul Krugman

"The Gold Bug Variations", Originally published in Slate (Nov. 23, 1996)
The Accidental Theorist: And Other Dispatches From The Dismal Science (1998)

“The idea that a country's economic fortunes are largely determined by its success on world markets is a hypothesis, not a necessary truth; and as a practical, empirical matter, that hypothesis is flatly wrong. That is, it is simply not the case that the world's leading nations are to any important degree in economic competition with each other, or that any of their major economic problems can be attributed to failures to compete on world markets.”

Paul Krugman

Pop Internationalism (1996), Competitiveness: A Dangerous Obsession (1994)

“The best you can say about economic policy in this slump is that we have for the most part avoided a full repeat of the Great Depression. I say “for the most part” because we actually are seeing a Depression-level slump in Greece, and very bad slumps elsewhere in the European periphery. Still, the overall downturn hasn’t been a full 1930s replay. But all of that, I think, can be attributed to the financial rescue of 2008-2009 and automatic stabilizers. Deliberate policy to offset the crash in private spending has been largely absent.”

Paul Krugman

"Economics in the Crisis" http://krugman.blogs.nytimes.com/2012/03/05/economics-in-the-crisis/ (March 5, 2012) The Conscience of a Liberal blog

“I do not think that word “compromise” means what Mr. Ryan thinks it means. Above all, he failed to offer the one thing the White House won’t, can’t bend on: an end to extortion over the debt ceiling. Yet even this ludicrously unbalanced offer was too much for conservative activists, who lambasted Mr. Ryan for basically leaving health reform intact.Does this mean that we’re going to hit the debt ceiling? Quite possibly; nobody really knows, but careful observers are giving no better than even odds that any kind of deal will be reached before the money runs out. Beyond that, however, our current state of dysfunction looks like a chronic condition, not a one-time event. Even if the debt ceiling is raised enough to avoid immediate default, even if the government shutdown is somehow brought to an end, it will only be a temporary reprieve. Conservative activists are simply not willing to give up on the idea of ruling through extortion, and the Obama administration has decided, wisely, that it will not give in to extortion.So how does this end? How does America become governable again?”

Paul Krugman

Regarding the ongoing 2013 U.S. government shutdown
[Paul Krugman, http://www.nytimes.com/2013/10/14/opinion/krugman-the-dixiecrat-solution.html?adxnnl=1&adxnnlx=1381867276-0uKEJS5eBZAKIo/by2ipKQ, The Dixiecrat Solution, New York Times, October 13, 2013, October 15, 2013]
The New York Times Columns

“In effect, Japan in the Nineties offered a fresh opportunity to test the views of Friedman and Keynes regarding the effectiveness of monetary policy in depression conditions. And the results clearly supported Keynes’s pessimism rather than Friedman’s optimism.”

Paul Krugman

"Who Was Milton Friedman?", The New York Review of Books (February 15, 2007)
The New York Review of Books articles

“This is a serious analysis of a ridiculous subject, which is of course the opposite of what is usual in economics.”

Paul Krugman The Theory of Interstellar Trade

Of his paper "The Theory of Interstellar Trade"; quoted in The Economist, 26 October 2013, p. 86

“Fortunately, there is a strategy that does double duty: it both helps you keep control of your own insights, and makes those insights accessible to others. The strategy is: always try to express your ideas in the simplest possible model. The act of stripping down to this minimalist model will force you to get to the essence of what you are trying to say (and will also make obvious to you those situations in which you actually have nothing to say). And this minimalist model will then be easy to explain to other economists as well.”

Paul Krugman

How I Work (1993)

“In short, the success of macroeconomic activism, in both theory and practice, has made it possible for free market microeconomics to survive--again both in theory and in practice.”

Paul Krugman

"Is the Economic Crisis a Crisis for Economics?", Slate (Nov. 13, 1998)