Why Paul Krugman Doesn’t Understand Bubbles

Under the ironically-titled post “Potential Misunderstandings“,Paul Krugmanprofoundly illustrates why he doesn’t understand bubbles by writing,”If you want to claim that an economy has grown unsustainably above potential, you need to show me the accelerating inflation.” Krugman didn’t see the dot-com bubble for what it was. He thought the economy was just fine. He even wrote […]

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