Jeremy R. Hammond, editor of Foreign Policy Journal, talks with Tom Woods about Ron Paul, Paul Krugman, and the Fed's role in the boom-bust cycle.
Paul Krugman likes to claim that he correctly diagnosed what was happening to the economy and advocated the proper measures during the Bush years, leading up to the financial crisis. But put his words side by side with Ron Paul’s, and we discover who the true expert is.
Jeremy R. Hammond, editor of Foreign Policy Journal, talks with Tom Woods about the role of the Federal Reserve in the boom-bust cycle.
I’ve never heard Krugman make such a claim. In fact he’s repeatedly pointed out that he as well as a lot of other people missed the fact that shadow banking was having such a huge effect.
http://www.reuters.com/article/2012/02/07/shadow-banking-idUSL5E8D60YI20120207
Admitting he “didn’t see it coming” and boasting that the policy he advocated was the right one are two different things. He certainly has done the latter.
I completely agree with Jeremy. If Krugman was unable to see or predict the financial crisis coming then why is anyone else so cock sure that Krugman is right about his solution — which is also a predicted and untried solution. His solution is also being tried out in Japan — huge QE for about 2 years now. Has it worked to revive the Japanese economy ?
Since 2013(when massive QE was implemented) Japan’s GDP has plunged by 17% while following Krugman’s economic policies. Horrific !!.
No further comment necessary.