Some Of Our Most Prominent Economists Don't Understand Economics

Paul Krugman takes a big step beyond the criticisms of Keynes that are based upon his sexual preference.  He lists the misunderstandings of several leading economists who have been critical of the use of fiscal policy.  One is a Nobel prize winner and several of the others have been regarded as candidates for the prize. Most are connected with the University of Chicago in some way.  The economics department at Chicago has a religious belief in a way of thinking the economy that excludes the role of the state.  The macro models that emanate from Chicago have no use for fiscal policy since the models assume that the economy is stable and self correcting.  They have been the major critics of Keynes since Milton Friedman championed the cause of libertarianism.  Keynes believed that the market economy was inherently unstable and that government could play an important role in moderating the business cycle and maintaining full employment.  That fundamental difference is not easily reconciled.