Epstein Secrets

ression, they probably won't blame fear, per se. Instead, they'll castigate our leaders for doing the wrong things as a result of unnecessary fear. Krugman: For the overriding fear driving economic policy has been debt hysteria, fear that unless we slash spending we'll turn into Greece any day now. Afte

mption that today's good news somehow is attached to a bad story as negative consequences could begin, not too far in the future. As Nobel Laureate Paul Krugman wrote this week in his op-ed in the New York Times - The Jobless Trap — We are creating a permanent class of unemployed Americans as a result of our

iding the alleged intellectual justification for austerity — Alberto Alesina and Silvia Ardagna on "expansionary austerity" and Carmen Reinhart and Kenneth Rogoff on the dangerous debt "threshold" at go percent of G.D.P. The problem is that the studies did not hold up under scrutiny. Because in late 2010, the

Centuries of Financial Folly, Carmen Reinhart and Kenneth Rogoff use historical data from 66 countries between 181

gree of certainty; historically, productivity forecasts have been notoriously wrong. In The Age of Diminished Expectations,” first published in 1990, Paul Krugman, Nobel laureate in economics and professor at City University of New York, wrote that the lower pace of productivity growth experienced since the ear

ent low productivity growth rates do not portend low growth rates going forward. Just as Hansen was proven wrong on his secular stagnation theory and Krugman was proven wrong on his diminished expectations for the US economy (and they were both influenced by their pessimistic view on productivity), those w

Department of Economics, Harvard University, v. November 9, 2009 Economics 1545: International Financial and Macroeconomic Policy Professor Kenneth Rogoff Time and Place: Fall 2009; M, W, 1—2:30 pm., Sever Hall 203 Office Hours: Littauer Center 216. Mondays 3-4 PM, or by appointment Email: SE (V8. Whe

Doesn’t Capital Flow from Rich to Poor Countries? An Empirical Investigation," NBER working paper 11901, December 2005. X. JAPAN’S DEFLATION TRAP *Krugman, Paul, "It's Baaack: Japan's Slump and the Return of the Liquidity Trap," Brookings Papers on Macroeconomic Activity, 1998, v2, 137-205. (including c