The Gold Standard | The Paul and Alan show

Browsing through www.dberesearch.com, I came across a note by Dr. Thomas Mayer, ‘I am an Austrian in economics’.  He recalled Krugman’s praise for Alan Greenspan in the 1990s:

If you want a simple model for predicting the unemployment rate in the United States over the next few years, here it is: It will be what Greenspan wants it to be, plus or minus a random error reflecting the fact that he is not quite God.

This is Paul on Alan on March 30, 2011 and this is Paul on Alan on 20th March 2011:

He’s no longer the Man Who Knows; he’s the man who presided over an economy careening to the worst economic crisis since the Great Depression — and who saw no evil, heard no evil, refused to do anything about subprime, insisted that derivatives made the financial system more stable, denied not only that there was a national housing bubble but that such a bubble was even possible.

Nothing wrong. When facts change, we change our opinions.

That is one benign interpretation of Paul’s change of heart on Alan. Surely, not the only possible interpretation.


DISCLAIMER: This is an archived post from the Indian National Interest blogroll. Views expressed are those of the blogger's and do not represent The Takshashila Institution’s view.