Here Paul Krugman muses on how well standard macro models did at predicting the after-effects of the crisis. He highlights how the prediction that the expansion of central bank balance sheets would NOT lead to runaway inflation was encoded in those standard models [it's the zero bound, stupid], contrary to the permahawks' scare-mongering.
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Here Paul Krugman muses on how well standard macro models did at predicting the after-effects of the crisis. He highlights how the prediction that the expansion of central bank balance sheets would NOT lead to runaway inflation was encoded in those standard models [it's the zero bound, stupid], contrary to the permahawks' scare-mongering.