ANGRY ECONOMISTS.

ANGRY ECONOMISTS. Kids, I usually find that reasoned argument helps me understand issues, so I want to call your attention to the fierce debate that is taking place about Keynesianism. This article by Paul Krugman gives a good introduction to the debate. Professor Krugman labels the debate as between “Freshwater Economists” and “Saltwater Economists”, but I think that the rival camps are more often known as the “Chicago School” (the “Freshwater Economists”) and everybody else (the “Saltwater Economists”). Think of the Chicago School as the leaders in the attacks on Keynesianism. In practical terms, you can associate Keynesianism with advocating fiscal stimulus policies in times of recession. To give you a flavor of the rhetoric on each side, Professor Krugman quotes prominent members of the Chicago School as calling the current stimulus plans “schlock economics” and saying that the plans are based on “fairy tales.” Professor Krugman quotes himself as saying that comments from Chicago School economists are “the product of a Dark Age of macroeconomics” and quotes Professor Brad DeLong as writing of the “intellectual collapse” of the Chicago School. Professor DeLong collects more harsh language from each side in this post.