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.
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.