I sat at home researching some info about Japan in the 90’s since it seemed relevant to our current crisis and I was going to write something about Japan (still will) and I stumbled upon a series of things Paul Krugman wrote in the 90’s (back when he worked at MIT) about Japan. To no one’s surprise, his solution to Japan’s problems was to simply print more money, a plan he continues to advocate for here and now. I generally like Krugman but it occurred to me that he is an ideologue. He seems to live by strict neo-Keynesian code, which made me wonder: does Krugman apply his neo-Keynesian ideals to all facets of life?
Here is a little dialogue from Krugman’s home life:
Mrs. Krugman: Honey the sink is broken.
Paul: Oh, we should print more money then.
Mrs. Krugman: How would that fix the sink?
Paul: Because people have money illusion; it’s all here in this book. (Pulls out copy of General Theory of Employment, Interest and Money) Have you read this yet like I asked? And for that matter, have you been printing money like I asked?
Mrs. Krugman: No, but Little Billy didn’t do so well on his latest report card.
Paul: Did you tell him to print more money?
Mrs. Krugman: No…
Paul: I’ll go talk to him then.
Billy: Hi dad, how are you?
Paul: Never mind me, are you printing more money at school like I told you to?
Paul: Well no wonder your grades aren’t good, you have to print more money.
Paul: Because people have money illusion; it’s all here in this book. (Pulls out copy of General Theory of Employment, Interest and Money) Have you read this yet like I asked?
Billy: I’m seven.
Paul: Oh please, if you need me, I’ll be in the garage printing money while repeatedly texting Ben Bernanke trying to convince him to print more money.