Ep. 117 How Bob Smacked Down Krugman on the Financial Crisis
Krugman is claiming that everything he said regarding housing and the financial crisis has been vindicated. The problem, he says, was a general collapse in “demand.” Contra Krugman co-host Bob Murphy, on the other hand, has shown in his own writing that in fact the crisis was not caused by a problem with “demand” in general, but with problems in particular sectors, brought about during the inflationary boom.
Krugman Blog Post
“Pessimism and Paralysis in the Aftermath of the Financial Crisis” (December 9, 2017)
“Can Austrian Theory Explain Construction Employment?,” by Bob Murphy
“What Economic Research Says About Fiscal Austerity and Higher Tax Rates,” by Bob Murphy
“Graphs to Accompany Bob’s Commentary During Contra Krugman Episode 117,” by Bob Murphy