Monday, July 17, 2006

Krugman does it again :: Greg Mankiw

Greg Mankiw (click title of this post) catches Krugman in yet another self contradiction:
NY Times columnist Paul Krugman yesterday:
There's a persistent myth, perpetuated by economists who should know better -- like Edward Lazear, the chairman of the president's Council of Economic Advisers -- that rising inequality in the United States is mainly a matter of a rising gap between those with a lot of education and those without.
Greg finds this quote from Krugman 2005:
The causes of this increase in equality [from 1979 to 2003] are a subject of some controversy, but probably the most important cause is rapid technological change, which has increased the demand for highly skilled or talented workers more rapidly than the demand for other workers.
Source: Microeconomics, by Paul Krugman and Robin Wells, page 512.

I suppose that Paul has changed his mind since this book (copyright 2005) was written. It is a bit harsh, however, for Paul to be so hard on Eddie for believing what Paul believed not very long ago.
A bit harsh, but that's Krugman for you. Caustic and confident. But not always right.


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