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Paul Krugman adopts key MMT talking point

In his latest Op-Ed:

But Canada has its own currency, which means that its government can’t run out of money, that it can bail out its own banks if necessary, and more. An independent Scotland wouldn’t. And that makes a huge difference.

He then goes on to explain the difference between Florida (a non-issuer) and the United States (the issuer of the dollar), and explains how Scotland (as a non-issuer of the pound) could end up just like Spain (a non-issuer) in the EU (the issuer of the Euro).

Years of struggle to establish the truth, and now Krugman presents it as conventional wisdom.

Victory, really, at least on that one point.

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okanogen's picture
Submitted by okanogen on

That is what makes him attractive. He is part of the conventional wisdom of the zeitgeist, those who outline acceptable ideas and concepts. One of the many hands who adjust the Overton Window. So observationally, this is important.

One thing that he ever did that made a difference? Hmm, I think that is a tall order for anyone in any commentariat role. I grant that it is suitably dismissive, if that is how you want to roll.


nihil obstet's picture
Submitted by nihil obstet on

That's not as much as we would like, but it's still a lot. He called bullshit on Bush from the beginning, the only regular voice in a major media outlet to do so. He supports the successes of the New Deal, rather than joining in on the attempts to claim that New Deal policies exacerbated the Depression. He's been strongly anti-austerian, against the Pain Caucus. He's even started coming around on his worst area, foreign trade, whose "free trade" agreements he used to support.

While I believe in disagreeing vigorously with any opinions we don't share, I think it's neither fair nor smart to diss Krugman as a person.

DCblogger's picture
Submitted by DCblogger on

Krugman was the first pundit with a big platform to call bullshit on Bush 43. He called bullshit back in 2000. He was called "shrill" because he kept insisting that Bush's budget numbers made no sense. I give him big credit. I have not given up on bringing him around to MMT.

Submitted by lambert on

My memory is hazy. But I agree on the general point. If you think conventional wisdom now is stifling, you weren't paying attention. Krugman and Froomkin, that was it in the mainstream. It was actually a big deal when Al Franken's book came out.