Krugman's economic modelling morass

Paul Krugman is championing John Hicks' IS-LM model as an explanation of today's economic crisis. It's an unrealistic theory that time should have weeded out.

Krugman describes himself as a "sorta-kinda New Keynesian”, and explains in his book End This Depression NOW! that New Keynesian macroeconomics evolved in reaction to the failure of the new classical approach to "explain the basic facts of recessions”.


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