[50] Thomas Palley: ‘Sorry, but Paul Krugman isn’t a real Keynesian’

Then, economist Thomas Palley, author of the book: “From Financial Crisis to Stagnation” talks to Erin about an American economy suffering from so-called secular stagnation. Former Clinton and Obama Administration Official Larry Summers has been talking about it. Is it a real phenomenon and is it a result of a financialized US economy? Dr. Palley explains. Palley also explains post-Keynesian economist Hyman Minsky’s financial instability hypothesis. While Dr. Palley admires the work of New Keynesian economist and Nobel laureate Paul Krugman, he does see crucial differences between the economics of post-Keynesians who saw the financial crisis coming and New Keynesians like Paul Krugman who most represent Keynesianism in the minds of the mainstream media.

In the Big Deal, Erin and Edward Harrison discuss whether the US is having an echo bubble in housing, plus where else to look for frothy housing markets.

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