Wow! How Things Change

Greg Mankiw in the NYT on November 28, 2008:

IF you were going to turn to only one economist to understand the problems facing the economy, there is little doubt that the economist would be John Maynard Keynes. Although Keynes died more than a half-century ago, his diagnosis of recessions and depressions remains the foundation of modern macroeconomics. His insights go a long way toward explaining the challenges we now confront.

Contrast that with Greg Mankiw in the European Economic Record in 1992:

The General Theory is an obscure book … We are in a much better position than Keynes was to figure out how the economy works.

3 responses to “Wow! How Things Change

  1. 8 years of multi-trillion dollar Keynesian “stimulus” from the Bush “conservatives” and look what it got us. Thank you Greg Mankiw.

    It’s a pathetic fact that the Bush Republicans don’t include a single “conservative” economist who knows a page of Hayek.

    Enough of Mankiw and the Bush Keynesians.

    They’ve had their chance and they’ve given us the worst financial crisis since Hoover.

    What we need is a GOP that has room for the Hayekians — folks like Lawrence White, George Selgin, Gerald O’Driscoll, Jr. and Roger Garrison.

    Until the GOP cleans out the Keynesians — the naked emperors of economic science — then we are in for an endless series of artificial booms and inevitable busts, generated by the Federal government and the Federal Reserve.

  2. I dunno, Greg. I’d rather see (classical) liberals, including pro-market economists defect to the Democratic Party. Back when the Cold War was kind of hot, it made good sense for classical liberals to ally with true conservatives. We had a common enemy in socialism and the enemy was strong. No more. Time to remember that the true liberal is a friend of the miserable and an enemy of power in all its forms. The Republics, I’m afraid, have become the party of established power and, especially, big government.

  3. In the times of Keynes the global domination of transnational corporation was not exist, we should to take this into consideration.Who pull the strings during today crisis?Who have all the milk, but no cattle?

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