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Krugman in 2008 Born ( 1953-02-28) February 28, 1953 (age 64), Institution Field School or tradition Alma mater Doctoral advisor Influences Contributions Awards (1991) (2004) (2008) at Paul Robin Krugman ( ( ); born February 28, 1953) is an American who is currently Distinguished Professor of Economics at the, and a for. In 2008, Krugman was awarded the for his contributions to and. The Prize Committee cited Krugman's work explaining the patterns of and the geographic distribution of economic activity, by examining the effects of and of consumer preferences for diverse goods and services. Krugman was previously a professor of economics at, and later. He retired from Princeton in June 2015, and holds the title of there. He also holds the title of Centenary Professor at the. Krugman was President of the in 2010, and is among the most influential economists in the world.
Krugman is known in academia for his work on (including trade theory, economic geography, and international finance), and. Krugman is the author or editor of 27 books, including scholarly works, textbooks, and books for a more general audience, and has published over 200 scholarly articles in professional journals and edited volumes. He has also written several hundred columns on economic and political issues for The New York Times, and. A 2011 survey of economics professors named him their favorite living economist under the age of 60. As a commentator, Krugman has written on a wide range of economic issues including, and international economics. Krugman considers himself a, referring to his books, his blog on The New York Times, and his 2007 book.
His popular commentary has attracted widespread attention and comments, both positive and negative. Paul Krugman, and, Nobel Prize Laureates 2008, at a press conference at the in Stockholm. Krugman was born to a family, the son of Anita and David Krugman. In 1922, his paternal grandparents immigrated to the United States from, at that time a part of.
He was born in, New York, and grew up in, a hamlet in. He graduated from in. According to Krugman, his interest in economics began with 's novels, in which the social scientists of the future use a new science of ' to try to save civilization.
Since present-day science fell far short of 'psychohistory', Krugman turned to economics as the next best thing. Krugman earned his summa cum laude in economics from in 1974, and went on to pursue a in economics from (MIT). In 1977, he successfully completed his PhD in three years, with a thesis titled Essays on flexible exchange rates. While at MIT, he was part of a small group of MIT students sent to work for the for three months in the summer of 1976, during the chaotic aftermath of the. Krugman later praised his PhD thesis advisor, as 'one of the great economics teachers of all time' and said that he 'had the knack of inspiring students to pick up his enthusiasm and technique, but find their own paths'. In 1978, Krugman presented a number of ideas to Dornbusch, who flagged as interesting the idea of a monopolistically competitive trade model. Encouraged, Krugman worked on it and later wrote, 'I knew within a few hours that I had the key to my whole career in hand'.
In that same year, Krugman wrote ', a tongue-in-cheek essay on computing interest rates on goods in transit near the speed of light. He says he wrote it to cheer himself up when he was 'an oppressed assistant professor'. Academic career. Krugman giving a lecture at the German National Library in Frankfurt in 2008. Krugman became an assistant professor at Yale University in September 1977. He joined the faculty of MIT in 1979.
From 1982 to 1983, Krugman spent a year working at the as a staff member of the. He rejoined MIT as a full professor in 1984. Krugman has also taught at, and the. In 2000, Krugman joined as Professor of Economics and International Affairs. He is also currently Centenary Professor at the London School of Economics, and a member of the international economic body. He has been a research associate at the since 1979. Krugman was President of the Eastern Economic Association in 2010.
In February 2014, he announced that he would be retiring from Princeton in June 2015 and that he would be joining the faculty at the. Paul Krugman has written extensively on international economics, including, and. The project ranks him among the world's most influential economists. Krugman's International Economics: Theory and Policy, co-authored with, is a standard undergraduate on international economics. He is also co-author, with, of an undergraduate economics text which he says was strongly inspired by the first edition of 's classic textbook. Krugman also writes on economic topics for the general public, sometimes on international economic topics but also on and. The stated that Krugman's main contribution is his analysis of the effects of, combined with the assumption that consumers appreciate, on and on the location of economic activity.
The importance of spatial issues in economics has been enhanced by Krugman's ability to popularize this complicated theory with the help of easy-to-read books and state-of-the-art syntheses. 'Krugman was beyond doubt the key player in 'placing geographical analysis squarely in the economic mainstream'.
And in conferring it the central role it now assumes.' New trade theory Prior to Krugman's work, trade theory (see and ) emphasized trade based on the of countries with very different characteristics, such as a country with a high agricultural trading agricultural products for industrial products from a country with a high industrial productivity. However, in the 20th century, an ever-larger share of trade occurred between countries with similar characteristics, which is difficult to explain by comparative advantage. Krugman's explanation of trade between similar countries was proposed in a 1979 paper in the, and involves two key assumptions: that consumers prefer a diverse choice of brands, and that production favors. Consumers' preference for diversity explains the survival of different versions of cars like Volvo and BMW. However, because of economies of scale, it is not profitable to spread the production of all over the world; instead, it is concentrated in a few factories and therefore in a few countries (or maybe just one).
This logic explains how each country may specialize in producing a few brands of any given type of product, instead of specializing in different types of products. Graph illustrating Krugman’s ‘core-periphery’ model. The horizontal axis represents costs of trade, while the vertical axis represents the share of either region in manufacturing.
Solid lines denote stable equilibria, dashed lines denote unstable equilibria. Krugman modeled a 'preference for diversity' by assuming a like that in a 1977 paper by and. Many models of international trade now follow Krugman's lead, incorporating economies of scale in production and a preference for diversity in consumption. This way of modeling trade has come to be called. Krugman's theory also took into account transportation costs, a key feature in producing the ', which would later feature in his work on the new economic geography.
The home market effect 'states that, the country with the larger demand for a good shall, at equilibrium, produce a more than proportionate share of that good and be a net exporter of it.' The home market effect was an unexpected result, and Krugman initially questioned it, but ultimately concluded that the mathematics of the model were correct.
When there are economies of scale in production, it is possible that countries may become ' disadvantageous patterns of trade. Krugman points out that although globalization has been positive on a whole, since the 1980s the process known as hyper-globalization has at least played a part in rising inequality. Nonetheless, trade remains beneficial in general, even between similar countries, because it permits firms to save on costs by producing at a larger, more efficient scale, and because it increases the range of brands available and sharpens the competition between firms. Krugman has usually been supportive of and. He has also been critical of, which New Trade Theory suggests might offer nations advantages if 'strategic industries' can be identified, saying it's not clear that such identification can be done accurately enough to matter.
New economic geography It took an interval of eleven years, but ultimately Krugman's work on New Trade Theory (NTT) converged to what is usually called the 'new economic geography' (NEG), which Krugman began to develop in a seminal 1991 paper, 'Increasing Returns and Economic Geography', published in the. In Krugman's own words, the passage from NTT to NEG was 'obvious in retrospect; but it certainly took me a while to see it.
The only good news was that nobody else picked up that $100 bill lying on the sidewalk in the interim.' This would become Krugman's most-cited academic paper: by early 2009, it had 857 citations, more than double his second-ranked paper. Krugman called the paper 'the love of my life in academic work.' The 'home market effect' that Krugman discovered in NTT also features in NEG, which interprets 'as the outcome of the interaction of increasing returns, trade costs and differences.'
If trade is largely shaped by, as Krugman's trade theory argues, then those economic regions with most production will be more profitable and will therefore attract even more production. That is, NTT implies that instead of spreading out evenly around the world, production will tend to concentrate in a few countries, regions, or cities, which will become densely populated but will also have higher levels of income. Agglomeration and economies of scale Manufacturing is characterized by increasing returns to scale and less restrictive and expansive land qualifications as compared to agricultural uses. So, geographically where can manufacturing be predicted to develop? Krugman states that manufacturing’s geographical range is inherently limited by economies of scale, but also that manufacturing will establish and accrue itself in an area of high demand. Production that occurs adjacent to demand will result in lower transportation costs, but demand, as a result, will be greater due to concentrated nearby production. These forces act upon one another simultaneously, producing manufacturing and population agglomeration.
Population will increase in these areas due to the more highly developed infrastructure and nearby production, therefore lowering the expense of good, while economies of scale provide varied choices of goods and services. These forces will feed into each other until the greater portion of the urban population and manufacturing hubs are concentrated into a relatively insular geographic area. International finance Krugman has also been influential in the field of. As a graduate student, Krugman visited the, where and Dale Henderson were completing their discussion paper on in the gold market. Krugman adapted their model for the, resulting in a 1979 paper on in the, which showed that misaligned regimes are unlikely to end smoothly: instead, they end in a sudden. Krugman's paper is considered one of the main contributions to the of models, and it is his second-most-cited paper (457 citations as of early 2009).
In response to the, Krugman proposed, in an informal 'mimeo' style of publication, an 'international finance multiplier', to help explain the unexpected speed with which the global crisis had occurred. He argued that when, 'highly leveraged financial institutions HLIs, which do a lot of cross-border investment. lose heavily in one market. they find themselves undercapitalized, and have to sell off assets across the board.
This drives down prices, putting pressure on the balance sheets of other HLIs, and so on.' Such a rapid contagion had hitherto been considered unlikely because of. He first announced that he was working on such a model on his blog, on October 5, 2008. Within days of its appearance, it was being discussed on some popular economics-oriented blogs.
The note was soon being cited in papers (draft and published) by other economists, even though it had not itself been through ordinary peer review processes. Macroeconomics and fiscal policy Krugman has done much to revive discussion of the as a topic in economics. He recommended pursuing aggressive fiscal policy and to counter Japan's in the 1990s, arguing that the country was mired in a Keynesian. The debate he started at that time over liquidity traps and what policies best address them continues in the economics literature.
Krugman had argued in The Return of Depression Economics that Japan was in a liquidity trap in the late 1990s, since the could not drop interest rates any lower to escape economic stagnation. The core of Krugman's policy proposal for addressing Japan's liquidity trap was, which, he argued 'most nearly approaches the usual goal of modern stabilization policy, which is to provide adequate demand in a clean, unobtrusive way that does not distort the allocation of resources.'
The proposal appeared first in a web posting on his academic site. This mimeo-draft was soon cited, but was also misread by some as repeating his earlier advice that Japan's best hope was in 'turning on the printing presses', as recommended by, John Makin, and others.
Krugman has since drawn parallels between Japan's ' and the, arguing that expansionary fiscal policy is necessary as the major industrialized economies are mired in a liquidity trap. In response to economists who point out that the recovered despite not pursuing his policy prescriptions, Krugman maintains that it was an export-led boom that pulled Japan out of its economic slump in the late-90s, rather than reforms of the financial system. Krugman was one of the most prominent advocates of the, so much so that economics commentator Noah Smith referred to it as the 'Krugman insurgency.' His view that most peer-reviewed macroeconomic research since the mid-1960s is wrong, preferring simpler models developed in the 1930s, has been criticized by some modern economists, like.
In June 2012, Krugman and launched A manifesto for economic sense, where they call for greater use of fiscal stimulus policy to reduce unemployment and foster growth. The manifesto received over four thousand signatures within two days of its launch, and has attracted both positive and critical responses. President poses for a photo with Nobel Prize winners Monday, Nov. 24, 2008, in the Oval Office. Joining President Bush from left are, Dr.
Paul Krugman, Economics Prize Laureate; Dr., Chemistry Prize Laureate; and Dr., Chemistry Prize Laureate. Nobel Memorial Prize in Economic Sciences Wikinews has related news: Krugman was awarded the (informally the Nobel Prize in Economics), the sole recipient for 2008.
This prize includes an award of about $1.4 million and was given to Krugman for his work associated with and the New Economic Geography. In the words of the prize committee, 'By having integrated economies of scale into explicit models, Paul Krugman has deepened our understanding of the determinants of trade and the location of economic activity.' Krugman at the 2010. In the 1990s, besides academic books and textbooks, Krugman increasingly began writing books for a general audience on issues he considered important for public policy. In The Age of Diminished Expectations (1990), he wrote in particular about the increasing in the ' of the 1990s. He attributes the rise in income inequality in part to changes in technology, but principally to a change in political atmosphere which he attributes to. In September 2003, Krugman published a collection of his columns under the title, about the 's economic and foreign policies and the US economy in the early 2000s.
His columns argued that the large deficits during that time were generated by the Bush administration as a result of decreasing taxes on the rich, increasing public spending, and fighting the. Krugman wrote that these policies were unsustainable in the long run and would eventually generate a major economic crisis. The book was a best-seller. In 2007, Krugman published, whose title refers to 's. It details the history of wealth and income gaps in the United States in the 20th century. The book describes how the gap between rich and poor declined greatly in middle of the century, and then widened in the last two decades to levels higher even than in the 1920s. In Conscience, Krugman argues that government policies played a much greater role than commonly thought both in reducing inequality in the 1930s through 1970s and in increasing it in the 1980s through the present, and criticizes the Bush administration for implementing policies that Krugman believes widened the gap between the rich and poor.
Krugman also argued that owed their electoral successes to their ability to exploit the race issue to win political dominance of the South. Krugman argues that had used the ' to signal sympathy for racism without saying anything overtly racist, citing as an example Reagan's coining of the term '.
In his book, Krugman proposed a 'new ', which included placing more emphasis on social and medical programs and less on national defense. In his review of Conscience of a Liberal, the liberal journalist and author credited Krugman with a commitment 'to accurate history even when some fudging might be in order for the sake of political expediency.' In a review for The New York Times, -winning historian stated, 'Like the rants of or the films of, Krugman's shrill polemic may hearten the faithful, but it will do little to persuade the unconvinced'. In late 2008, Krugman published a substantial updating of an earlier work, entitled The Return of Depression Economics and the Crisis of 2008. In the book, he discusses the failure of the United States regulatory system to keep pace with a financial system increasingly out-of-control, and the causes of and possible ways to contain the greatest financial crisis since the 1930s.
In 2012, Krugman published, a book which argues that looking at the available historical economic data, fiscal cuts and austerity measures only deprive the economy of valuable funds that can circulate and further add to a poor economy – people cannot spend, and markets cannot thrive if there is not enough consumption and there cannot be sufficient consumption if there is large unemployment. He argues that while it is necessary to cut debt, it is the worst time to do so in an economy that has just suffered the most severe of financial shocks, and must be done instead when an economy is near full-employment when the private sector can withstand the burden of decreased government spending and austerity. Failure to stimulate the economy either by public or private sectors will only unnecessarily lengthen the current economic depression and make it worse. Commentator has written that Krugman is both the 'most hated and most admired columnist in the US'. Economist has noted that Krugman 'has written on a wide range of topics, always combining one of the best prose styles in the profession with an ability to construct elegant, insightful and useful models.'
Neary added that 'no discussion of his work could fail to mention his transition from Academic Superstar to Public Intellectual. Through his extensive writings, including a regular column for The New York Times, monographs and textbooks at every level, and books on economics and current affairs for the general public. He has probably done more than any other writer to explain economic principles to a wide audience.' Krugman has been described as the most controversial economist in his generation and according to since 1992 he has moved 'from being a center-left scholar to being a liberal polemicist.'
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From the mid-1990s onwards, Krugman wrote for (1997–99) and (1996–99), and then for, and. In this period Krugman critiqued various positions commonly taken on economic issues from across the political spectrum, from and opposition to the on the left to on the right. During the, Krugman praised 's economic plan in The New York Times, and Clinton's campaign used some of Krugman's work on. At the time, it was considered likely that Clinton would offer him a position in the new administration, but allegedly Krugman's volatility and outspokenness caused Clinton to look elsewhere. Krugman later said that he was 'temperamentally unsuited for that kind of role.
You have to be very good at people skills, biting your tongue when people say silly things.' In a Fresh Dialogues interview, Krugman added, 'you have to be reasonably organized. I can move into a pristine office and within three days it will look like a grenade went off.'
In 1999, near the height of the, The New York Times approached Krugman to write a bi-weekly column on 'the vagaries of business and economics in an age of prosperity.' His first columns in 2000 addressed business and economic issues, but as the progressed, Krugman increasingly focused on 's policy proposals.
According to Krugman, this was partly due to 'the silence of the media – those 'liberal media' conservatives complain about.' Krugman accused Bush of repeatedly misrepresenting his proposals, and criticized the proposals themselves. After Bush's election, and his perseverance with his proposed tax cut in the midst of the slump (which Krugman argued would do little to help the economy but substantially raise the fiscal deficit), Krugman's columns grew angrier and more focused on the administration. As put it in 2002, 'There's been a kind of quality to his writing since then. He's trying to stop something now, using the power of the pen.' Partly as a result, Krugman's twice-weekly column on the Op-Ed page of The New York Times has made him, according to, 'the most important political columnist in America.
Standard Of Practice Second Edition 2009
He is almost alone in analyzing the most important story in politics in recent years – the seamless melding of corporate, class, and political party interests at which the Bush administration excels.' In an interview in late 2009, Krugman said his missionary zeal had changed in the post-Bush era and he described the Obama administration as 'good guys but not as forceful as I'd like.When I argue with them in my column this is a serious discussion. We really are in effect speaking across the transom here.'
Krugman says he's more effective at driving change outside the administration than inside it, 'now, I'm trying to make this progressive moment in American history a success. So that's where I'm pushing.' Krugman's columns have drawn criticism as well as praise. A 2003 article in questioned Krugman's 'growing tendency to attribute all the world's ills to,' citing critics who felt that 'his relentless partisanship is getting in the way of his argument' and claiming errors of economic and political reasoning in his columns., a former The New York Times, in his farewell column, criticized Krugman for what he said was 'the disturbing habit of shaping, slicing and selectively citing numbers in a fashion that pleases his acolytes but leaves him open to substantive assaults.' Krugman's New York Times blog is 'The Conscience of a Liberal,' devoted largely to economics and politics. Five days after terrorist attacks, Krugman argued in his column that calamity was 'partly self-inflicted' due to transfer of responsibility for airport security from government to airlines.
His column provoked an angry response and The New York Times was flooded with complaints. According to Larissa MacFarquhar of, while some people thought that he was too partisan to be a columnist for The New York Times, he was revered on the left. Similarly, on the 10th anniversary of the 9/11 on the United States Krugman again provoked a controversy by accusing on his New York Times blog former U.S. President George W. Bush and former New York City mayor of rushing 'to cash in on the horror' after the attacks and describing the anniversary as 'an occasion for shame'.
Krugman was noteworthy for his fierce opposition to the 2016 presidential campaign of. On January 19th, 2016 he wrote an article which criticized Bernie Sanders for his perceived lack of political realism, compared Sanders' plans for healthcare and financial reform unfavorably to those of, and cited criticisms of Sanders from other liberal policy wonks like Mike Konczal and.
Later, Krugman wrote an article which accused Sanders of 'going for easy slogans over hard thinking' and attacking Hillary Clinton in a way that was 'just plain dishonest.' Krugman has expressed reservations regarding the. East Asian growth In a 1994 article, Paul Krugman argued that it was a that the economic successes of the constituted an economic miracle. He argued that their rise was fueled by mobilizing resources and that their growth rates would inevitably slow. His article helped popularize the argument made by and, among others, that the growth of economies in was not the result of new and original economic models, but rather from high and increasing, and that total factor productivity had not increased. Krugman argued that in the long term, only increasing can lead to sustained. Krugman's article was highly criticized in many Asian countries when it first appeared, and subsequent studies disputed some of Krugman's conclusions.
However, it also stimulated a great deal of research, and may have caused the government to provide incentives for technological progress. During the, Krugman advocated as a way to mitigate the crisis. Writing in a article, he suggested exchange controls as 'a solution so unfashionable, so stigmatized, that hardly anyone has dared suggest it.' Was the only country that adopted such controls, and although the credited its rapid economic recovery on currency controls, the relationship is disputed.
An empirical study found that the Malaysian policies produced faster economic recovery and smaller declines in employment and real wages. Krugman later stated that the controls might not have been necessary at the time they were applied, but that nevertheless 'Malaysia has proved a point – namely, that controlling capital in a crisis is at least feasible.' Krugman more recently pointed out that emergency capital controls have even been endorsed by the IMF, and are no longer considered radical policy. Economic policies In the early 2000s, Krugman repeatedly criticized the, both before and after they were enacted. Krugman argued that the tax cuts enlarged the budget deficit without improving the economy, and that they enriched the wealthy – worsening in the US. Krugman advocated lower interest rates (to promote investment and spending on housing and other durable goods), and increased government spending on infrastructure, military, and unemployment benefits, arguing that these policies would have a larger stimulus effect, and unlike permanent tax cuts, would only temporarily increase the budget deficit.
In addition, he was against Bush's proposal to privatize social security. In August 2005, after expressed concern over housing markets, Krugman criticized Greenspan's earlier reluctance to regulate the mortgage and related financial markets, arguing that 'he's like a man who suggests leaving the barn door ajar, and then – after the horse is gone – delivers a lecture on the importance of keeping your animals properly locked up.'
Krugman has repeatedly expressed his view that Greenspan and are the two individuals most responsible for causing the. Krugman points to Greenspan and Gramm for the key roles they played in keeping, financial markets, and unregulated, and to the, which repealed era safeguards that prevented, investment banks and companies from merging. Krugman has also been critical of some of the 's economic policies.
He has criticized the as being too small and inadequate given the size of the economy and the banking rescue plan as misdirected; Krugman wrote in The New York Times: 'an overwhelming majority of the American public believes that the government is spending too much to help large financial institutions. This suggests that the administration's money-for-nothing financial policy will eventually deplete its political capital.' In particular, he considered the 's actions to prop up the US financial system in 2009 to be impractical and unduly favorable to Wall Street bankers. In anticipation of President Obama's Job Summit in December 2009, Krugman said in a Fresh Dialogues interview, 'This jobs summit can't be an empty exercise.he can't come out with a proposal for $10 or $20 Billion of stuff because people will view that as a joke. There has to be a significant job proposal.I have in mind something like $300 Billion.'
Krugman has recently criticized China's exchange rate policy, which he believes to be a significant drag on global economic recovery from the, and he has advocated a 'surcharge' on Chinese imports to the US in response. Jeremy Warner of accused Krugman of advocating a return to self-destructive.
In April 2010, as the Senate began considering new financial regulations, Krugman argued that the regulations should not only regulate financial innovation, but also tax financial-industry profits and remuneration. He cited a paper by and released the previous week, which concludes that most innovation was in fact about 'providing investors with false substitutes for traditional assets like bank deposits,' and once investors realize the sheer number of securities that are unsafe a 'flight to safety' occurs which necessarily leads to 'financial fragility.' In his June 28, 2010 column in The New York Times, in light of the recent, Krugman criticized world leaders for agreeing to halve deficits by 2013. Krugman claimed that these efforts could lead the global economy into the early stages of a 'third depression' and leave 'millions of lives blighted by the absence of jobs.'
He advocated instead the continued stimulus of economies to foster greater growth. In a 2014 review of 's he stated we are in a Second. Economic views Krugman identifies as a and a, and he has criticized the on. Although he has used theory in his work, he has also criticized it for lacking predictive power and for hewing to ideas like the and.
Since the 1990s, he has promoted the practical use of the model of the, pointing out its relative simplicity compared to New Keynesian models, and its continued currency in economic policy analysis. In the wake of the he has remarked that he is 'gravitating towards a - view of.' Observers cite commonalities between Krugman's views and those of the school. In recent academic work, he has collaborated with Gauti Eggertsson on a New Keynesian model of debt-overhang and debt-driven slumps, inspired by the writings of, and. Their work argues that during a debt-driven slump, the ', together with the, can exacerbate a, reducing demand and employment. Free trade Krugman's support for in the 1980s–1990s provoked some ire from the.
In 1987 he quipped that, 'If there were an Economist's Creed, it would surely contain the affirmations 'I understand the Principle of Comparative Advantage' and 'I advocate Free Trade'.' However, Krugman argues in the same article that, given the findings of New Trade Theory, 'free trade has shifted from optimum to reasonable rule of thumb.it can never again be asserted as the policy that economic theory tells us is always right.'
In the article, Krugman comes out in favor of free trade given the enormous political costs of actively engaging in and because there is no clear method for a government to discover which industries will ultimately yield positive returns. He also notes that increasing returns and strategic trade theory do not disprove the underlying truth of.
In 2015, Krugman noted his ambivalence about the proposed, as the agreement was not mainly about trade and, 'whatever you may say about the benefits of free trade, most of those benefits have already been realized' by existing agreements. Political views Krugman describes himself as, and has explained that he views the term 'liberal' in the American context to mean 'more or less what means in Europe.' In a 2009 article, described Krugman as having 'all the credentials of a ranking member of the East coast liberal establishment' but also as someone who is anti-establishment, a 'scourge of the Bush administration', and a critic of the Obama administration. In 1996, 's remarked, 'Say this for Krugman: though an unabashed liberal. He's ideologically colorblind.
He savages the supply-siders of the Reagan-Bush era with the same glee as he does the 'strategic traders' of the Clinton administration.' Krugman has at times advocated free markets in contexts where they are often viewed as controversial.
He has written against and in favor of market supply and demand, likened the opposition against free trade and globalization to the opposition against evolution via (1996), opposed, argued that are preferable to unemployment, dismissed the case for (1998), and argued against mandates, subsidies, and tax breaks for (2000). In 2003, he questioned the usefulness of 's manned space flights given the available technology and their high financial cost compared to their general benefits.
Krugman has also criticized U.S. Zoning laws and European labor market regulation. He calls current Israeli policy 'narrow-minded' and 'basically a gradual, long-run form of national suicide', saying that it's 'bad for Jews everywhere, not to mention the world'. Race relations Krugman has criticized the leadership for what he sees as a strategic (but largely tacit) reliance on racial divisions. In his Conscience of a Liberal, he wrote: The changing politics of race made it possible for a revived conservative movement, whose ultimate goal was to reverse the achievements of the New Deal, to win national elections – even though it supported policies that favored the interests of a narrow elite over those of middle- and lower-income Americans. On working in the Reagan administration Krugman worked for when the latter was appointed chairman of the and chief economic advisor to President.
He later wrote in an autobiographical essay, 'It was, in a way, strange for me to be part of the Reagan Administration. I was then and still am an unabashed defender of the, which I regard as the most decent social arrangement yet devised.' Krugman found the time 'thrilling, then disillusioning'. He did not fit into the Washington political environment, and was not tempted to stay on. On Gordon Brown vs David Cameron According to Krugman, and his party were unfairly blamed for the.
He has also praised the former, whom he described as 'more impressive than any US politician' after a three-hour conversation with him. Krugman asserted that Brown 'defined the character of the worldwide financial rescue effort' and urged British voters not to support the opposition in the, arguing their Party Leader 'has had little to offer other than to raise the red flag of fiscal panic.'
On President Trump Krugman has been a vocal critic of President Trump and his administration. His criticisms have included the president's climate change proposals, the Republican tax plan and Trump's foreign policy initiatives. Krugman has often used his New York Times Op-Ed column to argue his opposition to the President's policies. Personal life Krugman has been married twice. His first wife, Robin L. Bergman, is a designer.
He is currently married to, an academic economist who received her BA from the University of Chicago and her PhD from the University of California, Berkeley. She, as did Krugman, taught at MIT. Together, Krugman and his wife have collaborated on several economics textbooks. Although rumors began to circulate in early 2007 that Krugman's 'son' was working for Hillary Clinton's campaign, Krugman reiterated in his NY Times Op-Ed column that he and his wife are childless. Krugman currently lives in New York City. Upon retiring from Princeton after fifteen years of teaching in June 2015, he addressed the issue in his column, stating that while he retains the utmost praise and respect for Princeton, he wishes to reside in New York City and hopes to focus more on public policy issues. He subsequently became a professor at the and a distinguished scholar at the Graduate Center's Center.
Krugman reports that he is a distant relative of conservative journalist. He has described himself as a 'Loner. Ordinarily shy. Shy with individuals.' Published works Academic books (authored or coauthored). The Spatial Economy – Cities, Regions and International Trade (July 1999), with and.
MIT Press,. The Self Organizing Economy (February 1996),.
EMU and the Regions (December 1995), with. Development, Geography, and Economic Theory (Ohlin Lectures) (September 1995),. Foreign Direct Investment in the United States (3rd Edition) (February 1995), with Edward M. World Savings Shortage (September 1994),. What Do We Need to Know About the International Monetary System? (Essays in International Finance, No 190 July 1993).
Currencies and Crises (June 1992),. Geography and Trade (Gaston Eyskens Lecture Series) (August 1991),. The Risks Facing the World Economy (July 1991), with Guillermo de la Dehesa and Charles Taylor. Has the Adjustment Process Worked?
(Policy Analyses in International Economics, 34) (June 1991),. Rethinking International Trade (April 1990),.
Trade Policy and Market Structure (March 1989), with Elhanan Helpman. Exchange-Rate Instability (Lionel Robbins Lectures) (November 1988),. Adjustment in the World Economy (August 1987). Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy (May 1985), with. Academic books (edited or coedited). Currency Crises (National Bureau of Economic Research Conference Report) (September 2000),. Trade with Japan: Has the Door Opened Wider?
(National Bureau of Economic Research Project Report) (March 1995),. Empirical Studies of Strategic Trade Policy (National Bureau of Economic Research Project Report) (April 1994), co-edited with Alasdair Smith.
Exchange Rate Targets and Currency Bands (October 1991), co-edited with Marcus Miller. Strategic Trade Policy and the New International Economics (January 1986), Economics textbooks. Economics: European Edition (Spring 2007), with Robin Wells and Kathryn Graddy. Macroeconomics (February 2006), with Robin Wells. Economics, first edition (December 2005), with Robin Wells. Economics, second edition (2009), with Robin Wells.
Economics, third edition (2013), with Robin Wells. Microeconomics (March 2004), with Robin Wells. International Economics: Theory and Policy, with Maurice Obstfeld. 7th Edition (2006),; 1st Edition (1998), Books for a general audience. (April 2012).
A call for stimulative expansionary policy and an end to austerity. The Return of Depression Economics and the Crisis of 2008 (December 2008). An updated version of his previous work. (October 2007).
(September 2003). A book of his The New York Times columns, many deal with the economic policies of the Bush administration or the economy in general.
Fuzzy Math: The Essential Guide to the Bush Tax Plan (May 4, 2001). The Return of Depression Economics (May 1999). Considers the long economic stagnation of Japan through the 1990s, the, and problems in Latin America.
The Return of Depression Economics and the Crisis of 2008 (December 2008). The Accidental Theorist and Other Dispatches from the Dismal Science (May 1998). Essay collection, primarily from Krugman's writing for Slate.
Pop Internationalism (March 1996). Essay collection, covering largely the same ground as Peddling Prosperity. (April 1995).
History of economic thought from the first rumblings of revolt against to the present, for the layman. The Age of Diminished Expectations: U.S. Economic Policy in the 1990s (1990). A 'briefing book' on the major policy issues around the economy. Revised and Updated, January 1994,.
Third Edition, August 1997, Selected academic articles. (2012) ' The Quarterly Journal of Economics 127 (3), pp. 1469–513.
(2009) ' The American Economic Review 99(3), pp. 561–71. (1998) ' Brookings Papers on Economic Activity 1998, pp. 137–205. (1996) ' NBER Macroeconomics Annual 11, pp. 345–78. 'Globalization and the inequality of nations'.
Quarterly Journal of Economics. 110 (4): 857–80.
Journal of Political Economy 99, pp. 483–99. (1991) 'Target zones and exchange rate dynamics'. Quarterly Journal of Economics.
106 (3): 669–82. Quarterly Journal of Economics 106 (2), pp. 651–67. Journal of Political Economy 89, pp. 959–73. American Economic Review 70, pp. 950–59. 11, pp. 311–25. Journal of International Economics 9, pp. 469–79.
The same unique voice that made Paul Krugman a widely read economist is evident on every page of E conomics. The product of the partnership of coauthors Krugman and Robin Wells, the book returns in a new edition. The new edition is informed and informative, solidly grounded in economic fundamentals yet focused on the realities of today's world and the lives of students. It maintains the signature Krugman/Wells story-driven approach while incorporating organizational changes, new content and features, and new media and supplements. Watch a video interview of Paul Krugman here.
Just bought this textbook and currently I am reading through it. This book is magnificent. It's well written and easy to understand, with detailed diagrams that clearly convey the economic principles the authors are explaining in the surrounding text. Of course diagrams are found in every economics textbook, but the organization and neat presentation of this book does wonders to aid learning, and in my opinion goes beyond other books I have read. Each chapter builds on the previous and really enlightens the reader regarding the most important principles of economic theory (micro and macro).
For those worried about Krugman and whether he has just layered this book full of leftist propaganda, consider this opening paragraph from Chapter 5: 'New York City is a place where you can find almost anything - that is, almost anything, except a taxicab when you need one or a decent apartment at a rent you can afford. You might think that New York's notorious shortages of cabs and apartments are the inevitable price of big-city living. However, they are largely the product of government policies - specifically, of government policies that have, one way or another, tried to prevail over the market forces of supply and demand.' I'll be honest, as a avid reader of Krugman in the NYT, I'd never expected to read such a paragraph in this book.
Krugman saying that sometimes the government is the problem? Krugman goes on to explain exactly what policies are to blame for the housing shortage and taxi cab shortage in New York. The rest of the textbook is full of similar balance. He constantly keeps surprising me and making me think about things that I've never noticed before, such as the housing problem in New York.
Who knew such a problem has a simple explanation? (The explanation they give is that the housing shortage is caused by rent control, 'a law that prevents landlords from raising rents except when specifically given permission.' ) He and Robin really deliver a fair and balanced discussion of economics from Adam Smith up to present day. The book is full of little tidbits of information that Krugman and Wells call 'Economics in Action' and 'For Inquiring Minds' that usually contain little stories he's simply pulled from his daily reading of the New York Times and other newspapers.
He comments on them from an professional economist's point of view and relates them to the current discussion in whatever chapter they appear. For example, in Chapter 3 under 'Economics in Action,' Robin writes (as far as I know, Krugman wrote the macro chapters, and Robin wrote the micro): 'Thousands in Mexico City protest rising food prices.' So read the headline in the New York Times on February 1, 2007. Specifically, the demonstrators were protesting a sharp rise in the price of tortillas, a staple food of Mexico's poor, which had a gone from 25 cents a pound to between 35 and 45 cents a pound in just a few months. Why were tortilla prices soaring? It was a classic example of what happens to equilibrium prices when supply falls.
Tortillas are made from corn; much of Mexico's corn is imported from the United States, with the price of corn in both countries basically set in the U.S. Corn prices were rising rapidly thanks to the surging demand in a new market: the market for ethanol.' It's an interesting little factoid about a real life situation and he (or she) relates it to the subject of the chapter, which was Supply and Demand in that case. The book is littered with different examples on all sorts of topics in every chapter. And notice, once again Krugman could have gone off in a rant against the North American Free Trade agreement, and how the U.S.
Government's subsidies to farming was also partly responsible for running Mexico's corn producers out of business by flooding the global market with cheap corn (or something to that effect), but he never does. He keeps it professional and on topic, and it really provides a great learning experience. This is one of those textbooks that is so good a teacher isn't needed to assist in learning process.
So needless to say I'm quite impressed. The few problems in the Second Edition I received from Amazon include various printing mistakes - such as on a few pages there is text printed on top of a graph that shouldn't be there. Not sure if that is just a one time printing error or something that is in all 2nd editions.
But it's not enough to recommend staying away from this book. So if you are looking to learn more about economics, and even if you are just a layman and know nothing about economics, you can't go wrong with this book.
I guarantee if you have even the slightest interest in this subject then you'll find this a delightful read. I am a layman, economically speaking, though I hold degrees in chemistry and law. I sought a book which would be readable and explain elementary economic principles as an aid in understanding the political debates which involve the economy.
I was well rewarded. I doubt that the book would be of much value to those who a background in economics and certainly does not discuss arcane economic theories, etc.
But, of course, it is an introductory text. It is readable, balanced, uses real world examples to illustrate principles. An excellent place for a layman to start! I am a student of one of Brazil's top economics schools and mistakenly bought this book for my Introduction to Microeconomics class. Both Mankiw's and Krugman's study guides were listed as recommended reading at the course's online syllabus, but I chose this one as it seemed more modern and was co-written by a Nobel Prize winner. Later on I found out that the textbook the department would really use was Mankiw's - and only Mankiw's.
Now I can see why. This textbook is prolix, condescending and excessively simplistic. The authors' long-windedness turns one-phrase concept explanations into page-long silly stories filled with incredibly unnecessary remarks. It is as if the students weren't able to grasp the most intuitive concepts and come to the most simple conclusions and extrapolations by themselves.
The study ends up being unproductive and boring. It's biggest flaw, though, is their authors' constant fear to use any level of mathematics (even the most basic algebra won't show up at the problem sets). That is a major flaw if the student wants to become a decent professional or if their school intends to use a more serious, better quality textbook on Intermediate Microeconomics (such as Nicholson's) later on. The students will grow unused to math applications at economics, and, by the time it's needed for them to 'get their hands dirty', they will face some serious problems. In its defense, though, it has a sturdy binding, comprehensive graphs and a few interesting (even if slightly unnecessary) examples. Overall, for the average high school student or a lower level undergraduate economics course, this is a recommendable textbook. For any mid or higher level introductory course, though, this is a very bad choice.
I have read portions of several economics textbooks and I have to say that Economics, Second Edition ( 2009 ) appears to be one of the best. Despite Paul Krugman's reputation as a 'leftist' the introductory pages of this text present economics in the favorable light of the classical 'invisible hand' market model of economics which Krugman praises enthusiastically in his opening volley. Krugman drags the 'command economy' model of economics over the coals with highly critical references to the Soviet command economy that preceded the mixed economy that seems now to prevail in Russia. The edition that I am reading appears to have been written too early to take the Great Recession fully into account so as a result its appraisal of the state of the American economy seems to be overly optimistic. In these early pages some lip service is paid to the role of externalities and to the toxic effect of greed, but these topics are unfortunately minimalized in the introductory pages of this text.
As to the specific deficiencies of command economies that are cited by Paul Krugman it appears to me that many of the problems that Paul Krugman cites may be ameliorated by the application of current and future higher speed computers and by the generation of new economic models that may be made possible and practical by this new technology. Anyway, I think that Paul Krugman has resorted to stereotypes in his critique of the Soviet command economy, and I further think that many of the problems of that economy were caused more by the political organization of the former Soviet Union than by any intrinsic fault of the command model of economic regulation and the command model allocation of the resources of society.