Wednesday, March 11, 2009
DeLong is On His Game
Just wanted to point to a really good post by Brad DeLong regarding the sometimes laughable anti-Keynes economists out there. There are legitimate reasons to be concerned about government debt and all this spending, but to completely disavow Keynes at this point in time just smacks as out of touch. I've said this months ago at the onset of the crisis, and I'll say this again, new-classical economics, in all its extreme forms, is dead. Economics as a field had better start coming up with a different paradigm, or risk falling into the land of irrelevancy. The field can start by incorporating already existing models from heterodox schools which, if weren't ignored in the first place, may have helped prevent this all from happening to begin with.