- Matt Yglesias picks up my post on Jefferson.
- Bob Murphy cites my 1920-21 paper in a post on the "soft patch" we've hit that may turn itself into a double-dip. The article itself is very odd to me. Murphy writes:
"But go look at Krugman's analysis at the time. His point was not so much that the Romer team's numbers were wrong (though he did think their projections of what would happen without the stimulus were very optimistic). Rather, he was saying that on their own projections, they weren't anywhere near to closing the "output gap." In other words, in terms of the above graph, Krugman wasn't warning, "Guys, I think actual unemployment with the stimulus package will look like the red dotted line, so you need to spend a lot more." Rather, he was saying, "Guys, that blue line is still pretty miserable, and the Republicans might classify the stimulus as a failure. So you'd better spend more.""
As for the first bolded statement - what exactly is Bob under the impression the "output gap" is? That is a proclamation that the estimates are too rosy, is it not? And what's this talk about Republicans? Nothing Bob links to seems to mention Republicans at all. Certainly Krugman and others were worried that Republicans would scuttle the stimulus, but from the beginning the complaint was that this wasn't enough - that it would help but we would still have high unemployment. How Murphy gets this: "Therefore, when it comes to the effects of the "stimulus" package, the free-market economists (including the Austrians) were right, and the Keynesians were wrong" is beyond me (kind of an oddly constructed sentence too - although I guess in the same way that I'm not a "classical liberal" to Bob, I'm also not a "free market economist", so in the mises.org world it makes sense). Is anyone aware of any Austrian forecasts of unemployment for 2009-2011? I bet if we paired the Austrian forecasts (I doubt there are any) with the actual unemployment with stimulus, it wouldn't look quite so bad. But then again, it wouldn't serve their interests to forecast and subsequently post such a thing. This is all bizarre to me.- And speaking of Krugman, the blog Beats and Pieces likes my "On Paul Krugman" post.
- In a comment on what I have to say in a spectacularly bad post by Don Boudreaux on Keynes and Smith, a commenter writes this of me: "You have the potential to become the Walter Kaufmann of John Maynard Keynes. Kaufmann scrubbed all the naughtiness of Friedrich Nietzsche and made him palatable to the English-speaking public. You are doing the same for Keynes. Congratulations on your new role." My response: "The English-speaking public on both sides of the Atlantic found Keynes quite palatable even in his own time."