Paul Krugman citations (106 citations)

“Many of the stories economists tell take the form of models—for whatever else they are, economic models are stories about how the world works.”

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Paul Krugman

Preface
Economics (4th ed., 2015)

“I believe in a relatively equal society, supported by institutions that limit extremes of wealth and poverty. I believe in democracy, civil liberties, and the rule of law. That makes me a liberal, and I’m proud of it.”

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Paul Krugman livre The Conscience of a Liberal

Source: The Conscience of a Liberal (2007), Ch. 13. The Conscience of a Liberal http://books.wwnorton.com/books/detail.aspx?ID=5887. W. W. Norton & Company. 352 pages ISBN 978-0-393-06069-0, 1st edition (2007)

“… politics determine who has the power, not who has the truth.”

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Paul Krugman

The Australian Financial Review, 6 September 2010, p. 15, "Time for Obama to abandon caution". Also seen in the Sacramento Bee http://www.sacbee.com/2010/09/04/3004829/obama-should-aim-high-on-stimulus.html

“To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble. Judging by Mr. Greenspan's remarkably cheerful recent testimony, he still thinks he can pull that off. But the Fed chairman's crystal ball has been cloudy lately; remember how he urged Congress to cut taxes to head off the risk of excessive budget surpluses? And a sober look at recent data is not encouraging.”

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Paul Krugman

"Dubya's Double Dip?" http://www.nytimes.com/2002/08/02/opinion/dubya-s-double-dip.html, The New York Times, 2 August 2002
:It should be noted that Krugman was being sarcastic http://www.cepr.net/index.php/blogs/beat-the-press/when-someone-says-paul-krugman-called-for-greenspan-to-create-a-housing-bubble-back-in-2002-they-are-trying-to-say-that-they-are-either-a-fool-or-a-liar; two weeks later, he wrote an article http://www.nytimes.com/2002/08/16/opinion/mind-the-gap.html warning about the dangers of a housing bubble.
The New York Times Columns

“There was a limited literature on external economies and international trade before 1978. It was never, however, very influential, because it seemed terminally messy; even the simplest models became bogged down in a taxonomy of possible outcomes. What has since become clear is that this messiness arose in large part because the modelers were asking their models to do what traditional trade models do, which is to predict a precise pattern of specialization and trade.”

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Paul Krugman

How I Work (1993)

“That's a hard answer to accept, especially for those American policy intellectuals who recoil from the dreary task of reducing deficits and raising the national savings rate. But economics is not a dismal science because the economists like it that way; it is because in the end we must submit to the tyranny not just of the numbers, but of the logic they express.”

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Paul Krugman

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

“Economists can often be remarkably obtuse, failing to see things that are right in front of them. But sometimes a bit of obtuseness is not entirely a bad thing.”

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Paul Krugman

Development, Geography, and Economic Theory (1995), Ch. 2. Geography Lost and Found

“It’s a great honour to be asked to give this talk, especially because I’m arguably not qualified to do so. I am, after all, not a Keynes scholar, nor any kind of serious intellectual historian. Nor have I spent most of my career doing macroeconomics. Until the late 1990s my contributions to that field were limited to international issues; although I kept up with macro research, I avoided getting into the frontline theoretical and empirical disputes.”

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Paul Krugman

" Mr Keynes and the moderns http://www.voxeu.org/article/mr-keynes-and-moderns/" (June 21, 2011)

“When the economy is in a depression, scarcity ceases to rule. Productive resources sit idle, so that it is possible to have more of some things without having less of others; free lunches are all around. As a result, all the usual rules of economics are stood on their head; we enter a looking-glass world in which virtue is vice and prudence is folly. Thrift hurts our future prospects; sound money makes us poorer. Moreover, that's the kind of world we have been living in for the past several years, which means that it is a kind of world that students should understand. […] Depression economics is marked by paradoxes, in which seemingly virtuous actions have perverse, harmful effects. Two paradoxes in particular stand out: the paradox of thrift, in which the attempt to save more actually leads to the nation as a whole saving less, and the less-well-known paradox of flexibility, in which the willingness of workers to protect their jobs by accepting lower wages actually reduces total employment. […] In times of depression, the rules are different. Conventionally sound policy – balanced budgets, a firm commitment to price stability – helps to keep the economy depressed. Once again, this is not normal. Most of the time we are not in a depression. But sometimes we are – and 2013, when this chapter was written, was one of those times.”

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Paul Krugman

“Depressions are Different”, in Robert M. Solow, ed. Economics for the Curious: Inside the Minds of 12 Nobel Laureates. 2014.

“Many of those who reject the idea of economic models are ill-informed or even (perhaps unconsciously) intellectually dishonest.”

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Paul Krugman

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

“Democrats have to figure out why the white working class just voted overwhelmingly against its own economic interests, not pretend that a bit more populism would solve the problem.”

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Paul Krugman

The New York Times Columns, The Populism Perplex (November 25, 2016)

“So you can take your pick as to which Mundell you prefer; but the Nobel committee basically honored Mundell the younger, the economist who was iconoclastic enough to imagine that Canada, of all places, was the economy of the future--and was right.”

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Paul Krugman

"O Canada", Slate (October 19, 1999)

“International trade in goods and services has expanded steadily over the past six decades thanks to declines in shipping and communication costs, globally negotiated reductions in government trade barriers, the widespread outsourcing of production activities, and a greater awareness of foreign cultures and products. New and better communications technologies, notably the Internet, have revolutionized the way people in all countries obtain and exchange information.”

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Paul Krugman

Paul R. Krugman, Maurice Obstfeld, and Marc J. Melitz, International Economics: Theory & Policy, 9th edition (2012)

“I would summarize the Keynesian view in terms of four points:1. Economies sometimes produce much less than they could, and employ many fewer workers than they should, because there just isn’t enough spending. Such episodes can happen for a variety of reasons; the question is how to respond.
2. There are normally forces that tend to push the economy back toward full employment. But they work slowly; a hands-off policy toward depressed economies means accepting a long, unnecessary period of pain.
3. It is often possible to drastically shorten this period of pain and greatly reduce the human and financial losses by “printing money”, using the central bank’s power of currency creation to push interest rates down.
4. Sometimes, however, monetary policy loses its effectiveness, especially when rates are close to zero. In that case temporary deficit spending can provide a useful boost. And conversely, fiscal austerity in a depressed economy imposes large economic losses.”

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Paul Krugman

Keynesianism Explained http://krugman.blogs.nytimes.com/2015/09/15/keynesianism-explained (September 15, 2015)
The Conscience of a Liberal blog

“If there were an Economist's Creed, it would surely contain the affirmations 'I understand the Principle of Comparative Advantage' and 'I advocate Free Trade”

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Paul Krugman Is Free Trade Passé?

"Is Free Trade Passé?", The Journal of Economic Perspectives, Vol. 1, No. 2 (Autumn, 1987)

“If economists ruled the world, there would be no need for a World Trade Organization. The economist's case for free trade is essentially a unilateral case- that is, it says that a country serves its own interests by pursuing free trade regardless of what other countries may do.”

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Paul Krugman

"What should trade negotiators negotiate about?" Journal of Economic Literature, Vol. 35, No. 1 (Mar., 1997)

“You can’t explain the votes of places like Clay County as a response to disagreements about trade policy. The only way to make sense of what happened is to see the vote as an expression of, well, identity politics — some combination of white resentment at what voters see as favoritism toward nonwhites (even though it isn’t) and anger on the part of the less educated at liberal elites whom they imagine look down on them.”

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Paul Krugman

The New York Times Columns, The Populism Perplex (November 25, 2016)

“It has been obvious for quite a while that Sanders — not just his supporters, not even just his surrogates, but the candidate himself — has a problem both in facing reality and in admitting mistakes.”

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Paul Krugman

Questions of Character http://krugman.blogs.nytimes.com/2016/05/17/democratic-groundhog-day/ (May 17, 2016)
The Conscience of a Liberal blog

“Economics is harder than physics; luckily it is not quite as hard as sociology. Why is economics such a hard subject? Part of the answer has to do with complexity. The economy cannot be put in a box. […] Another reason economics is hard is that the critical sociologist is right: it involves human beings, who do not behave in simple, mechanical ways.”

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Paul Krugman livre Peddling Prosperity

Preface
Peddling Prosperity (1994)

“If we discovered that, you know, space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months. … There was a Twilight Zone episode like this in which scientists fake an alien threat in order to achieve world peace. Well, this time, we don't need it, we need it in order to get some fiscal stimulus.”

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Paul Krugman

on CNN's "Fareed Zakaria GPS", August 21, 2011. http://www.huffingtonpost.com/2011/08/15/paul-krugman-fake-alien-invasion_n_926995.html

“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.”

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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.”

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Paul Krugman livre 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.”

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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.”

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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.”

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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.”

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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.”

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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.”

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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.”

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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.”

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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