Paul Krugman: Trending quotes (page 3)

“Whether the influence of increasing returns on trade and geography is rising or falling, one thing is clear: much was learned from the intellectual revolution that brought increasing returns into the heart of how we think about the world economy. It wasn't just that economists could make sense of previously puzzling data, we found ourselves able to see things that had previously been in an intellectual blind spot. Many people contributed to this process of enlightenment; I'm proud to have been a part of the journey.”

Paul Krugman

"The Increasing Returns Revolution in Trade and Geography", The American Economic Review (Jun., 2009)

People , World , Thinking , Sense

“Most economists, to the extent that they think about the subject at all, regard the Great Depression of the 1930s as a gratuitous, unnecessary tragedy.”

Paul Krugman

Introduction
The Return of Depression Economics and The Crisis of 2008 (2009)

Thinking

“Sometimes economists in official positions give bad advice; sometimes they give very, very bad advice; and sometimes they work at the OECD.”

Paul Krugman

"The Beatings Must Continue" http://krugman.blogs.nytimes.com/2013/04/30/the-beatings-must-continue-2/, 30 April 2013
The Conscience of a Liberal blog

“There are three kinds of writing in economics: Greek-letter, up-and-down, and airport. Greek-letter writing formal, theoretical, mathematical is how professors communicate. Like any academic field, economics has its fair share of hacks and phonies, who use complicated language to hide the banality of their ideas; it also contains profound thinkers, who use the specialized language of the discipline as an efficient way to express deep insights. […] Up-and-down economics is what one encounters on the business pages of newspapers, or for that matter on TV. It is preoccupied with the latest news and the latest numbers, hence its name. […] Finally, airport economics is the language of economics bestsellers. These books are most prominently displayed at airport bookstores, where the delayed business traveler is likely to buy them. Most of these books predict disaster: a new great depression, the evisceration of our economy by Japanese multinationals, the collapse of our money. A minority have the opposite view, a boundless optimism: new technology or supply-side economics is about to lead us into an era of unprecedented economic progress. Whether pessimistic or optimistic, airport economics is usually fun, rarely well informed, and never serious.”

Paul Krugman

Preface
The Age of Diminished Expectations (1990; 1994; 1997)

Money , Books , Way , Travel

“The whole subject of the liquidity trap has a sort of Alice-through-the-looking glass quality. Virtues like saving, or a central bank known to be strongly committed to price stability, become vices; to get out of the trap a country must loosen its belt, persuade its citizens to forget about the future, and convince the private sector that the government and central bank aren’t as serious and austere as they seem.”

Paul Krugman

"Thinking About the Liquidity Trap", Journal of the Japanese and International Economies (2000)

Future , Country , Forgetting

“When it comes to the all-too-human problem of recessions and depressions, economists need to abandon the neat but wrong solution of assuming that everyone is rational and markets work perfectly. The vision that emerges as the profession rethinks its foundations may not be all that clear; it certainly won’t be neat; but we can hope that it will have the virtue of being at least partly right.”

Paul Krugman

"How Did Economists Get It So Wrong?", The New York Times (September 2, 2009)
The New York Times Columns

Hope , Problem

“We’re living in a Dark Age of macroeconomics. Remember, what defined the Dark Ages wasn’t the fact that they were primitive — the Bronze Age was primitive, too. What made the Dark Ages dark was the fact that so much knowledge had been lost, that so much known to the Greeks and Romans had been forgotten by the barbarian kingdoms that followed.”

Paul Krugman

"A Dark Age of Macroeconomics" http://krugman.blogs.nytimes.com/2009/01/27/a-dark-age-of-macroeconomics-wonkish/, 27 January 2009
The Conscience of a Liberal blog

Age , Knowledge

“If there is one single area of economics in which path dependence is unmistakable, it is in economic geography – the location of production in space.”

Paul Krugman

"History and Industry Location: The Case of the Manufacturing Belt", The American Economic Review, Vol. 81, No. 2, (May, 1991)

Dependency

“As the example of Ronald Reagan shows, real political success comes not simply from appealing to the interests that people currently perceive but from finding ways to redefine their perceived interests, to harness their discontent in favor of changes that you can lead.”

Paul Krugman book Peddling Prosperity

Introduction: Looking for Magicians
Peddling Prosperity (1994)

People , Way , Change , Success

“What I believe is that the age of creative silliness is not past. Virtue, as an economic theorist, does not consist in squeezing the last drop of blood out of assumptions that have come to seem natural because they have been used in a few hundred earlier papers. If a new set of assumptions seems to yield a valuable set of insights, then never mind if they seem strange.”

Paul Krugman

How I Work (1993)

Age , Nature , Past

“But the honest truth is that what drives me as an economist is that economics is fun. I think I understand why so many people think that economics is a boring subject, but they are wrong. On the contrary, there is hardly anything I know that is as exciting as finding that the great events that move history, the forces that determine the destiny of empires and the fate of kings, can sometimes be explained, predicted, or even controlled by a few symbols on a printed page. We all want power, we all want success, but the ultimate reward is the simple joy of understanding.”

Paul Krugman

Incidents from my career http://web.mit.edu/krugman/www/incidents.html (1995)

Fate , People , Truth , History

“By 2005 or so, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's.”

Paul Krugman

"Why most economists' predictions are wrong" http://web.archive.org/web/19980610100009/www.redherring.com/mag/issue55/economics.html, The Red Herring, June 1998

“At the time, I thought of it this way: it was as if bacteria that used to cause deadly plagues, but had long been considered conquered by modem medicine, had reemerged in a form resistant to all the standard antibiotics. Here's what I wrote in the introduction to the first edition: "So far only a limited number of people have actually fallen prey to the newly incurable strains; but even those of us who have so far been lucky would be foolish not to seek new cures, new prophylactic regimens, whatever it takes, lest we tum out to be the next victims."”

Paul Krugman

Well, we were foolish. And now the plague is upon us.
Introduction
The Return of Depression Economics and The Crisis of 2008 (2009)

People , Way , Time

“As Branko says, there was a time when Serbs and Croats seemed to get along fairly well, indeed intermarrying at a high rate. But could anyone now put Yugoslavia back together? At this rate, we’ll soon be asking the same question about America.”

Paul Krugman

The New Climate Of Treason https://krugman.blogs.nytimes.com/2017/07/14/the-new-climate-of-treason/ (July 14, 2017)
The Conscience of a Liberal blog

Question , Time

“The world is full of self-organizing systems, systems that form structures not merely in response to inputs from outside but also, indeed primarily, in response to their own internal logic. Global weather is a self-organizing system; so, surely, is the global economy.”

Paul Krugman

Source: The Self-Organizing Economy (1996), Chapter 9. Concluding Thoughts

World , Weather

“Productivity isn't everything, but in the long run it is almost everything. A country's ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.”

Paul Krugman

Source: The Age of Diminished Expectations (1990; 1994; 1997), Chapter 1: Productivity Growth. Page 11.

Time , Dependency , Country

“First, most of the speculation about the superiority of the communist system - including the popular view that Western economies could painlessly accelerate their own growth by borrowing some aspects of that system - was off base. Rapid Soviet economic growth was based entirely on one attribute: the willingness to save, to sacrifice current consumption for the sake of future production. The communist example offered no hint of a free lunch.
Second, the economic analysis of communist countries' growth implied some future limits to their industrial expansion - in other words, implied that a naive projection of their past growth rates into the future was likely to greatly overstate their real prospects. Economic growth that is based on expansion of inputs, rather than on growth in output per unit of input, is inevitably subject to diminishing returns. It was simply not possible for the Soviet economies to sustain the rates of growth of labor force participation, average education levels, and above all the physical capital stock that had prevailed in previous years. Communist growth would predictably slow down, perhaps drastically.”

Paul Krugman

Pop Internationalism (1996), Asia's Miracle (1994)

Education , Past , Future , Country

“The new trade theory picture of the world looks something like this: Each country has, at any given time, a set of broad resources—land, skilled labor, capital, climate, general technological competence. These resources define up to a point the industries in which the country can hope to be competitive on world markets. […] But a country's resources do not fully determine what it produces, because the detailed pattern of advantage reflects the self-reinforcing virtuous circles, set in motion by the vagaries of history.”

Paul Krugman book Peddling Prosperity

Source: Peddling Prosperity (1994), Ch. 9 : The Economics of QWERTY

World , Hope , History , Time

“I do not mean to say that formal economic analysis is worthless, and that anybody's opinion on economic matters is as good as anyone else's. On the contrary! I am a strong believer in the importance of models, which are to our minds what spear-throwers were to stone age arms: they greatly extend the power and range of our insight. In particular, I have no sympathy for those people who criticize the unrealistic simplifications of model-builders, and imagine that they achieve greater sophistication by avoiding stating their assumptions clearly. The point is to realize that economic models are metaphors, not truth. By all means express your thoughts in models, as pretty as possible (more on that below). But always remember that you may have gotten the metaphor wrong, and that someone else with a different metaphor may be seeing something that you are missing.”

Paul Krugman

" How I Work http://web.mit.edu/krugman/www/howiwork.html", American Economist (1993)

People , Truth , Age , Imagination

“…and Newt [Gingrich] — although somebody said "he’s a stupid man’s idea of what a smart person sounds like," but he is more plausible than the other guys that they’ve been pushing up.”

Paul Krugman

This Week with Christiane Amanpour http://www.mediaite.com/tv/paul-krugman-newt-gingrich-is-a-stupid-mans-idea-of-what-a-smart-person-sounds-like/, November 20, 2011

Stupidity , Guy , Idea , Personality