| "My old teacher Rudi Dornbusch -- whose presence is sorely missed in this world gone mad -- once wrote an influential analysis, with Sebastian Edwards, of what they called macroeconomic populism. This is the historical tendency of some (not all) populist governments to engage in wishful thinking, to believe that they can repeal the usual rules -- that they can indefinitely contain inflation in an overheated economy with price controls, that they can ignore limits on capacity, etc.. It's slightly tricky to talk about this problem in times like these macroeconomic populism is heterodox economics, which is not all macroeconomic populism; e,g,, capital controls have often been an ultimately destructive attempt to mask underlying reality,.. |
Read the rest of the story HERE:
At krugman.blogs.nytimes.com
At krugman.blogs.nytimes.com
1
