An Error Paul Krugman Won’t Acknowledge

An Error Paul Krugman Won’t Acknowledge

Jeremy R. Hammond

August 15, 2013

Paul Krugman acknowledges an error he made in one of his columns, then he writes:

And it’s both Times policy and mine to acknowledge errors when you make them.

I left the comment:

So when are you going to acknowledge your error of advocating that the Fed lower interest rates to create a housing bubble?

In another post, Krugman talks about the housing bubble and how household debt soared, and how as a result when the bubble burst, people stopped spending. He argues that the government should have increased spending more, since he thinks economic growth comes from spending. He says the mistake “everyone”, including himself, made was to have

underestimated the fragility of the financial system, but also the importance of household debt, and, above all, the foolishness of policymakers.

I left the comment:

You mean the foolishness of the policymakers in following the policy you advocated of lowering interest rates to create a housing bubble?

Of course, he denies ever having done so. Which is a primary reason I wrote the book  Ron Paul vs. Paul Krugman: Austrian vs. Keynesian economics in the financial crisis, to document his record on the housing bubble and illustrate how intellectually dishonest he is

http://www.jeremyrhammond.com/2013/08/15/an-error-paul-krugman-wont-acknowledge/