tag:blogger.com,1999:blog-5713178645208582139.post4716372532976528725..comments2024-03-17T03:26:42.785-05:00Comments on Macro Musings Blog: Paul Krugman and the Vertical Aggregate Demand CurveDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5713178645208582139.post-9423030587190748102008-12-04T10:49:00.000-06:002008-12-04T10:49:00.000-06:00Krugman is on record saying he has no stomach for ...Krugman is on record saying he has no stomach for economics written, say, before his time in graduate school -- anyone who's read Krugman's "criticisms" of Friedrich Hayek knows well that Krugman hasn't read of word of the great economist. <BR/><BR/>I'm guessing the same is true of most every other economist in the history of economic thought. <BR/><BR/>Krugman looks to me like an early versionFredhttps://www.blogger.com/profile/02562042392964282677noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-37749218663773913452008-12-04T08:46:00.000-06:002008-12-04T08:46:00.000-06:00ECB:I agree,the bigger issue is the AD curve shift...ECB:<BR/><BR/>I agree,the bigger issue is the AD curve shifting left, not its slope. Still, Krugman's use of a vertical AD to justify his view couldn't be ignored.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-54191177017202563162008-12-04T08:28:00.000-06:002008-12-04T08:28:00.000-06:00Round and round we go...didn't we have this debate...Round and round we go...didn't we have this debate circa 1950? And it did not go in favor of vertical AD curves....Krugman appears a poor historian of thought.<BR/>But its surely an irrelevant debate anyway because the stabilizing effects of rising real money balances are outweighed by the destabilizing effects of debt deflation argued by Irving Fisher.<BR/>Falling prices reduce revenues so that Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-69549005232094950802008-12-04T06:50:00.000-06:002008-12-04T06:50:00.000-06:00AD-AS is taught in Principles classes, but the IS-...AD-AS is taught in Principles classes, but the IS-LM is usually only taught in intermediate macro.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-565691627412468982008-12-04T01:12:00.000-06:002008-12-04T01:12:00.000-06:00I thought AD - AS modeling and IS-LM analysis had ...I thought AD - AS modeling and IS-LM analysis had been abandoned to the TA's teaching freshman macro.Fredhttps://www.blogger.com/profile/02562042392964282677noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-88979090241226574632008-12-04T01:09:00.000-06:002008-12-04T01:09:00.000-06:00Krugman is a rocket scientists.What kind of person...Krugman is a rocket scientists.<BR/><BR/>What kind of person asks a rocket scientist for evidence?<BR/><BR/>>>can buy that there was some steeping of the AD curve, but to forcefully conclude that it was perfectly vertical and, thus, high nominal wages had no effect on employment and output seems too extreme. Where is the conclusive evidence?<BR/><BR/>What is really remarkable is that Fredhttps://www.blogger.com/profile/02562042392964282677noreply@blogger.com