Krugman and the Nobel Prize

I'm not going to beat a horse that's already moving, so rather than re-analyze the awarding of the Nobel Prize to Paul Krugman, I'll let economic minds with more institutional knowledge than mine have their say.

http://www.marginalrevolution.com/marginalrevolution/2008/10/what-is-new-tra.html

http://www.marginalrevolution.com/marginalrevolution/2008/10/paul-krugman-wi.html

http://www.marginalrevolution.com/marginalrevolution/2004/07/paul_krugman_gu.html


Well, I might say a few words.

Krugman can easily and truly be said to be the best-known and most popular left-wing economist in the United States, if not the world. Interestingly, though he is in favor of several government interventions that I'm uncomfortable with, Krugman's economic ideals are much, much closer to mine than are those of most politicians from either party.

His Nobel was technically awarded for his work on trade theory (much of which I was actually unaware of), but many economists feel that this award also signals the importance of social and policy relevance to the work of an economist. I agree. There is no point to theory if that theory cannot be used to better society in some fashion.

However, despite the undeniable successes that Krugman has achieved in issues of trade, he has also unquestionably fallen flat on his face regarding basic economic thinking. Please read this article!