Explaining Southern California's economy

The day the economists failed

In this three photo combo, Professor of

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Paul Krugman isn't happy about how economists handled the financial crisis.

Just catching up with this. It's the text of Paul Krugman's speech upon receiving some honorary degrees in Spain. It's well worth a full read. There's some wonky econo-speak, but Krugman's labors as a New York Times op-ed columnist have enabled him to convey some complex ideas with admirable clarity. 

Quick summary: the economists failed when the financial crisis hit. When the economy isn't in crisis, economists are basically useless. But when it all goes to hell, they're urgently needed and must to be ready to offer the best possible advice. 

Krugman thinks he and his fellow economists blew it, mainly because they descended into ideological and intellectual squabbling after the initial, successful response to the crisis was mustered.

He starts by blaming himself. This small portion of the speech, to me, explains a lot about how even a public intellectual/academic economist like Krugman could be blindsided:

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