Is Prof. Krugman a French war general?

Another round of debate on relevance of macro modelling.

It starts with NoahSmith’s poston macro modelling.  Prof Krugman reponds in his usual style connecting French war generals with macro modelling:

Oh, good — Noah Smith has given me some more economic methodology stuff to waste time on, instead of turning to my various deadlines. OK, I’ll make this shortish.

Noah argues that macroeconomic theorists have been like French generals, always preparing to fight the last war — in the 80s they were working on finding solutions for the problems of the 70s, in the 90s they were working on the problems of the 80s, and so on. It’s a nice image — but I think it gives economists both too much and too little credit.

🙂

John Taylor responds blaming policymakers for not listening..

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