- Krugman, going back to the public debt issue. Maybe this one clarifies his position a little? I still think he said what I always thought he said, and I still think that (1.) Nick and Bob highlighted excellent points - even points that I hadn't thought about before seeing the modeling, but (2.) they still were not challenging or contradicting Krugman's argument. Neither was Don. Steve and Gene were right to come to Krugman's defense. This is actually a very good thing, people. It's OK if six professional economists choose to emphasize different aspects of a problem because they think different aspects are more important. It's more disconcerting if six professional economists come to wildly different conclusions on the same point. I don't think that is what happened.
- Andrew Sullivan shares some good points on the intergenerational obligations of government. This relates to things I've said in the past about temporal autarky and intertemporal externalities. Paine and Jefferson would heartily agree. I am less sure than I used to be about this "compact" language. It's probably safer to just say that government is an institution that emerges to solve many of these problems, it has characteristics similar to compact, but it's not exactly a compact - and leave it at that.
Noted for June 19, 2013
2 hours ago