Thomas Palley: ‘Sorry, but Paul Krugman isn’t a real Keynesian’
Is America a ‘financialized’ economy, dependent on bubbles for growth? One sector we hear about having bubbles is technology. But is the tech bubble moniker warranted? Erin Ade discusses. Then, economist Thomas Palley, author of ‘From Financial Crisis to Stagnation’, talks about an American economy suffering from so-called secular stagnation. He also explains post-Keynesian economist Hyman Minsky’s financial instability hypothesis. Palley sees crucial differences between post-Keynesians, who saw the financial crisis coming, and New Keynesians like Paul Krugman, who most represent Keynesianism in the minds of the mainstream media. In the Big Deal, Erin and Edward Harrison discuss whether the US is having an echo bubble in housing, plus where else to look for frothy housing markets.