A nice mini-essay by Pete Boettke at Coordination Problem (was The Austrian Economists).
Stiglitz is right to stress that bad ideas result in bad public policy which in turn results in bad economic, political and social outcomes. But, Stiglitz has misidentified what the bad ideas are, and his narrative mischaracterizes the nature of public policy for the past 6 decades and in particular the last 2 decades. We have not experienced a period of neo-liberal neglect and arrogance, but instead a waffling back and forth between conservative and liberal Keynesianism guided by an illusion of an artistic rendering of economic and political life. This has been the public policy hegemony for the past 60+ years. It is time that this alternative narrative be listened to, rather than the same old story that emerged from the Keynesian follies so many decades ago.
Paul Samuelson was brilliant too. Check out his commentary on the comparative performance of the Russian and US economies through the 1950s.
John Nevile of the Uni of NSW reviews a book on the Keynesian revolution in America. For Samuelson, to be young at that time “was very heaven” (a steal from Wordsworth on the early optimism of the French Revolution, a nice piece of irony that eluded Samuelson).
Recycling one of my pieces from Club Troppo. The name of the author had to be changed to keep the post alive after I was dropped from the roster in the wake of a 700 comment “thread of doom” on Climate Change .