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[[File:Paul Krugman.jpeg|thumb|right|Paul Krugman]]

'''Paul Krugman''' is an American economist and [[Nobel Memorial Prize in Economic Sciences|Nobel laureate]]. He is also an op-ed columnist and blogger for the [[New York Times]]. Krugman is well known for following the theories of [[John Maynard Keynes]] and continually advocates for more inflation and government intervention in the economy. Krugman defines [[inflation]] as a measurement of prices and not the quantity of money<ref>[http://krugman.blogs.nytimes.com/2010/11/09/inflation-delusions-2/] "Inflation delusions"</ref><ref>[http://krugman.blogs.nytimes.com/2010/11/06/are-rising-commodity-prices-an-inflationary-signal/] "Are rising commodity prices an inflationary signal?"</ref><ref>[http://krugman.blogs.nytimes.com/2010/11/04/generating-inflation-expectations/] "Generating inflation expectations"</ref> and argues that printing money can help an economy in a depression.<ref name="Krugman_Phantoms">Paul Krugman. [https://www.nytimes.com/2012/11/26/opinion/krugman-fighting-fiscal-phantoms.html "Fighting Fiscal Phantoms"], ''New York Times'', Published: November 25, 2012. Referenced 2012-11-26. See also the [http://krugman-in-wonderland.blogspot.com/2012/11/krugman-channels-his-inner-crank.html response] from William Anderson.</ref> 

For these and other views is Krugman frequently criticized by Austrian economists.{{Fact}} A blog created by [[William L. Anderson|William L. Anderson]] is devoted to "Analysis and criticism of America's most prominent public intellectual and champion of Keynesian economics."<ref name="Anderson_Krugman">William L. Anderson. [http://krugman-in-wonderland.blogspot.com/ "Krugman-in-Wonderland"], referenced 2010-11-16.</ref> In October 2010, Krugman was challenged to a [[Murphy-Krugman debate|debate]] over Austrian vs. Keynesian business cycle theory by economist [[Robert Murphy]].

==Broken window fallacy==
The [[broken-window fallacy]] was seen in a column by Princeton University professor Paul Krugman after the terrorist attack on the World Trade Center:<ref name="Williams_lunacy">Walter. E. Williams. [http://www.washingtontimes.com/news/2004/nov/22/20041122-095742-3613r/ "Economic lunacy"], November 22, 2004, Washington Times. Referenced 2011-01-05.</ref> "Ghastly as it may seem to say this, the terror attack -- like the original day of infamy, which brought an end to the Great Depression -- could even do some economic good."<ref name="Krugman_Horror">Paul Krugman. [http://www.nytimes.com/2001/09/14/opinion/reckonings-after-the-horror.html "Reckonings; After The Horror"], September 14, 2001, The New York Times. Referenced 2011-01-05.</ref>

In 1998, Krugman said: "During phases of weak growth there are always those who say that lower interest rates will not help. They overlook the fact that low interest rates act through several channels. For instance, more housing is built, which expands the building sector. You must ask the opposite question: why in the world shouldn't you lower interest rates?" To the question "...because that would only promote inflation instead of growth?" he responded "There is no danger of that!"<ref name="Hanke_Zinsen">Thomas Hanke. [http://www.zeit.de/1998/51/Runter_mit_den_Zinsen_ "Runter mit den Zinsen!"] (in ''German'', "Down with the rates!"), ''Die Zeit'', 51/1998. [http://www.pkarchive.org/global/welt.html Translation by Peter Bartl]. Referenced 2011-01-05.</ref>

In June, 2011, Paul Krugman declared that a new war would solve the nation’s looming economic problems: "If we suddenly had a threat of war and a military build up, you’d be amazed how fast the economy would recover."<ref name="Krugman_ABC">Paul Krugman. [http://abcnews.go.com/ThisWeek/video/roundtable-jobs-13765518 "Roundtable: Where are the Jobs?"] (video, from ~4:56), ''ABC News'', 06/05/2011. 2011-06-09.</ref>

==Krugman on Austrian Economics==
In 1998, Krugman wrote that he regarded the "Austrian theory" of the [[Austrian Business Cycle Theory|business cycle]] "about as worthy of serious study as the phlogiston theory of fire".<ref name="Krugman_Hangover">Paul Krugman. [http://www.slate.com/id/9593 "The Hangover Theory"], ''Slate'', December 4, 1998. Referenced 2011-01-25.</ref> In 2011, he conceded that (in his understanding of) the Austrian explanation both is theoretically possible and actually happens in the real world:<ref name="Krugman_Reply">Robert P. Murphy. [http://mises.org/daily/4993 "My Reply to Krugman on Austrian Business-Cycle Theory"], ''Mises Daily'', January 24, 2011. Referenced 2011-01-25.</ref>

<blockquote>So what is the essence of this Austrian story? Basically, it says that what we call an economic boom is actually something like [[China|China's]] disastrous [[Great Leap Forward]], which led to a temporary surge in consumption but only at the expense of degradation of the country's underlying productive capacity. And the unemployment that follows is a result of that degradation: there's simply nothing useful for the unemployed workers to do.

I like this story, and there are probably other cases besides China 1958–1961 to which it applies. But what reason do we have to think that it has anything to do with the business cycles we actually see in market economies?<ref name="Krugman_Leaps">Paul Krugman. [http://krugman.blogs.nytimes.com/2011/01/19/great-leaps-backward/ "Great Leaps Backward"], ''The New York Times'', January 19, 2011. Referenced 2011-01-25.</ref></blockquote>

==Krugman in Support of the 2000’s US Housing Bubble==

===Recommending the Federal Reserve lower interest rates to create a housing bubble:===
1998-12-10:<blockquote> “During phases of weak growth there are always those who say that lower interest rates will not help. They overlook the fact that low interest rates act through several channels. For instance, more housing is built, which expands the building sector. You must ask the opposite question: why in the world shouldn’t you lower interest rates?” <ref name="Housing Bubble undated">Paul Krugman. [http://www.pkarchive.org/global/welt.html "DIE ZEIT"], ''DIE ZEIT- INTERVIEW WITH KRUGMAN - Translation by Peter Bartl''. Original article: [http://www.zeit.de/1998/51/Runter_mit_den_Zinsen_/seite-3 "Runter mit den Zinsen!"] ("Down with the interest rates!" in ''German'') from 10.12.1998. Referenced 2011-01-26.</ref></blockquote>

2001-05-02:<blockquote> I've always favored the let-bygones-be-bygones view over the crime-and-punishment view. That is, I've always believed that a speculative bubble need not lead to a recession, as long as interest rates are cut quickly enough to stimulate alternative investments. But I had to face the fact that speculative bubbles usually are followed by recessions. My excuse has been that this was because the policy makers moved too slowly -- that central banks were typically too slow to cut interest rates in the face of a burst bubble, giving the downturn time to build up a lot of momentum. That was why I, like many others, was frustrated at the smallish cut at the last Federal Open Market Committee meeting: I was pretty sure that Alan Greenspan had the tools to prevent a disastrous recession, but worried that he might be getting behind the curve. 
However, let's give credit where credit is due: Mr. Greenspan has cut rates since then. And while some of us may have been urging him to move even faster, the Fed's four interest-rate cuts since the slowdown became apparent represent an unusually aggressive response by historical standards. It's still not clear that Mr. Greenspan has caught up with the curve -- let's have at least one more rate cut, please -- but the interest-rate cuts do, cross your fingers, seem to be having an effect. 
If we succeed in avoiding recession, this will mark a big win for let-bygones-be-bygones, and a big loss for crime-and-punishment. And that will be very good news not just for this business cycle, but for business cycles to come. <ref name="Housing Bubble 2001-05-02">Paul Krugman. [http://www.nytimes.com/2001/05/02/opinion/reckonings-dodging-the-bullet.html "Reckonings; Dodging the Bullet"], ''The New York Times'', May 2, 2001. Referenced 2011-01-26.</ref></blockquote>

2001-07-18:<blockquote> KRUGMAN: "I think frankly it’s got to be — business investment is not going to be the driving force in this recovery. It has to come from things like housing, things that have not been (UNINTELLIGIBLE)."

DOBBS: "We see, Paul, housing at near record levels, we see automobile purchases near record levels. The consumer is still very much in this economy. Can he or she — or I should say he and she, can they bring back this economy?"

KRUGMAN: "Well, as far as the arithmetic goes, yes, it is possible. Will the Fed cut interest rates enough? Will long-term rates fall enough to get the consumer, get the housing sector there in time? We don’t know" <ref name="Housing Bubble 2001-07-18">Paul Krugman. [http://www.pkarchive.org/economy/ML071801.html "LOU DOBBS MONEYLINE"], ''LOU DOBBS MONEYLINE, July 18, 2001: Interview with Paul Krugman''. Original transcript: [http://transcripts.cnn.com/TRANSCRIPTS/0107/18/mlld.00.html "Lou Dobbs Moneyline"], July 18, 2001. Referenced 2011-01-26.</ref></blockquote>

2001-08-14:<blockquote> Still, as former Treasury Secretary Larry Summers says, you don't have to refill a flat tire through the puncture. To reflate the economy, the Fed doesn't have to restore business investment; any kind of increase in demand will do. How might demand increase? Consumers, who already have low savings and high debt, probably can't contribute much. But housing, which is highly sensitive to interest rates, could help lead a recovery… But there has been a peculiar disconnect between Fed policy and the financial variables that affect housing and trade. Housing demand depends on long-term rather than short-term interest rates -- and though the Fed has cut short rates from 6.5 to 3.75 percent since the beginning of the year, the 10-year rate is slightly higher than it was on Jan. 1... Sooner or later, of course, investors will realize that 2001 isn't 1998. When they do, mortgage rates and the dollar will come way down, and the conditions for a recovery led by housing and exports will be in place. <ref name="Housing Bubble 2001-08-14">Paul Krugman. [http://www.nytimes.com/2001/08/14/opinion/reckonings-delusions-of-prosperity.html “Reckonings; Delusions of Prosperity''] ''The New York Times'', August 14, 2001. Referenced 2011-01-26.</ref></blockquote>

2001-08-22:<blockquote> KRUGMAN: "I’m a little depressed. You know, inventories, probably that’s over, the inventory slump. But you look at the things that could drive a recovery, business investment, nothing happening. Housing, long-term rates haven’t fallen enough to produce a boom there. The trade balance is going to get worst before it gets better because the dollar is still very strong. It’s not a happy picture." <ref name="Housing Bubble 2001-08-22">Paul Krugman. [http://www.pkarchive.org/economy/ML082201.html “LOU DOBBS MONEYLINE"], ''LOU DOBBS MONEYLINE, August 22, 2001: Interview with Paul Krugman'', August 22, 2001. Referenced 2011-01-26.</ref></blockquote>

2001-10-07:<blockquote> Post-terror nerves aside, what mainly ails the U.S. economy is too much of a good thing. During the bubble years businesses overspent on capital equipment; the resulting overhang of excess capacity is a drag on investment, and hence a drag on the economy as a whole. 
In time this overhang will be worked off. Meanwhile, economic policy should encourage other spending to offset the temporary slump in business investment. Low interest rates, which promote spending on housing and other durable goods, are the main answer. <ref name="Housing Bubble 2001-10-07">Paul Krugman. [http://www.nytimes.com/2001/10/07/opinion/reckonings-fuzzy-math-returns.html “Reckonings; Fuzzy Math Returns"], ''The New York Times'', October 7, 2001. Referenced 2011-01-26.</ref></blockquote>

2001-12-28:<blockquote> The good news about the U.S. economy is that it fell into recession, but it didn't fall off a cliff. Most of the credit probably goes to the dogged optimism of American consumers, but the Fed's dramatic interest rate cuts helped keep housing strong even as business investment plunged. <ref name="Housing Bubble 2001-12-28">Paul Krugman. [http://www.nytimes.com/2001/12/28/opinion/could-ve-been-worse.html “Could've Been Worse"], ''The New York Times'', December 28, 2001. Referenced 2011-01-26.</ref></blockquote>

2002-08-02:<blockquote> The basic point is that the recession of 2001 wasn't a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble. <ref name="Housing Bubble 2002-08-02">Paul Krugman. [http://www.nytimes.com/2002/08/02/opinion/dubya-s-double-dip.html “Dubya's Double Dip?"], ''The New York Times'', August 2, 2002. Referenced 2011-01-26.</ref></blockquote>

===Opposing the Federal Reserve raising interest rates:===
2008-03-03:<blockquote>One argument I’ve been hearing a lot lately runs as follows: “Low interest rates got us into this mess, so it’s crazy to think that low interest rates are the solution.”
Now, I don’t actually buy the first premise: I blame Greenspan for ignoring warnings about subprime and housing, but I still think keeping the Fed funds rate at 1% for a long time was justified by the economy’s weakness, which lasted until late 2003 or even beyond. But it’s true that we had an orgy of over-borrowing in the housing market. So the question remains: does an effort to encourage even more borrowing make sense?
Yes. <ref name="Housing Bubble 2008-03-03">Paul Krugman. [http://krugman.blogs.nytimes.com/2008/03/03/hair-of-the-dog "Hair of the dog"], ''Conscience of a Liberal: New York Times Blog'', March 3, 2008. Referenced 2011-01-26.</ref></blockquote>

2004-08-10:<blockquote>Oh, and on a nonpolitical note: even before Friday's grim report on jobs, I was puzzled by Mr. Greenspan's eagerness to start raising interest rates. Now I don't understand his policy at all.<ref name="Housing Bubble 2004-08-10">Paul Krugman. [http://www.nytimes.com/2004/08/10/opinion/spin-the-payrolls.html "Spin The Payrolls"], ''The New York Times'', August 10, 2004. Referenced 2011-01-26.</ref></blockquote>

===Crediting the housing bubble for the mid-2000’s economic recovery:===
2008-02-19:<blockquote>In fact, I’d say that the sources of the economy’s expansion from 2003 to 2007 were, in order, the housing bubble, the war, and — very much in third place — tax cuts. <ref name="Housing Bubble 2008-02-19">Paul Krugman. [http://krugman.blogs.nytimes.com/2008/02/19/bush-is-right-about-something "Bush is right about something"], ''Conscience of a Liberal: New York Times Blog'', February 19, 2008. Referenced 2011-01-26.</ref></blockquote>

2008-01-24:<blockquote>What finally created a convincing recovery was the housing boom. But that turned into a bubble, which has burst big time. <ref name="Why worry">Paul Krugman.  [http://krugman.blogs.nytimes.com/2008/01/24/why-worry-about-a-poor-stimulus-plan/ "Why Worry About a Poor Stimulus Plan"], ''Conscience of a Liberal: New York Times Blog'', January 24, 2008. Referenced 2011-08-11.</ref></blockquote>

2006-10-30:<blockquote>'''Neeraj Mehra, Amritsar, India''': Mr. Greenspan has done a disservice to the nation by creating the housing boom. As a layman-observer, that’s the lingering thought I’ve had. Your article reaffirms it.
The question I have is this: Did he do the right thing — acting morally by engineering a housing boom, more as a bridge loan, until something else showed up at the horizon to shore up the economy — because he didn’t have a choice, or did he undertake a path of mere political expediency? And, that’s a question that’s nagging me for a while.
Would appreciate it if you could shed some light.

'''Paul Krugman''': As Paul McCulley of PIMCO remarked when the tech boom crashed, Greenspan needed to create a housing bubble to replace the technology bubble. So within limits he may have done the right thing. But by late 2004 he should have seen the danger signs and warned against what was happening; such a warning could have taken the place of rising interest rates. He didn’t, and he left a terrible mess for Ben Bernanke.<ref name="Credit where credit is due">Paul Krugman. [http://krugman.blogs.nytimes.com/2006/10/30/credit-where-credit-is-due/ "Credit Where Credit is Due"], ''Conscience of a Liberal: New York Times Blog'', October 30, 2006. Referenced 2011-08-11.</ref></blockquote>

2005-05-27:<blockquote>As Mr. McCulley predicted, interest rate cuts led to soaring home prices, which led in turn not just to a construction boom but to high consumer spending, because homeowners used mortgage refinancing to go deeper into debt. All of this created jobs to make up for those lost when the stock bubble burst.
Now the question is what can replace the housing bubble.<ref name="Housing Bubble 2005-05-27">Paul Krugman. [http://www.nytimes.com/2005/05/27/opinion/27krugman.html "Running Out of Bubbles"], ''The New York Times'', May 5, 2007. Referenced 2011-01-26.</ref></blockquote>

===Denials:===
2012-07-03:<blockquote>Give me a break... If you actually read that [August 2, 2002] article, actually read it... I was joking. I was saying that, I was talking about, the difficulty of responding purely with monetary policy to the kind of slump that we were then experiencing.  And it's a measure, I might say, of the intellectual bankruptcy of a large part of this debate, that the best they can do is keep on claiming that I was actually advocating the creation of a housing bubble. I obviously wasn't doing that.<ref name="Krugman_Housing_joke">Paul Krugman. [https://www.youtube.com/watch?v=EX55BH97quk&feature=player_embedded Paul Krugman: "¡Acabad ya con esta crisis!"] (video). Parts of the video are in Spanish; question starts at 1:40:00; Krugman's answer from 1:41:30. Discussion of the book "End This Depression Now!", held on July 3, 2012 at the ''Fundación Rafael del Pino''. Referenced 2012-07-11.</ref><ref name="Diego Sanchez">Diego Sánchez de la Cruz.  [http://diego-sanchez-de-la-cruz.libremercado.com/2012/07/04/958/3 "Krugman el bromista"], ''LibreMercado'', July 4, 2012.  Referenced 2012-07-13.</ref></blockquote>

2009-06-17:<blockquote>One of the funny aspects of being a somewhat, um, forceful writer is that I’m regularly accused of all sorts of villainy. I was personally responsible for the demise of Enron; my nonexistent son worked for Hillary; etc.. The latest seems to be that I called for the creation of a housing bubble — in fact, the bubble is my fault! The claim seems to be based on this piece.
Guys, read it again. It wasn’t a piece of policy advocacy, it was just economic analysis. What I said was that the only way the Fed could get traction would be if it could inflate a housing bubble. And that’s just what happened.<ref name="Grassy Knoll">Paul Krugman. [http://krugman.blogs.nytimes.com/2009/06/17/and-i-was-on-the-grassy-knoll-too/ "And I was on the grassy knoll, too"], ''Conscience of a Liberal: New York Times Blog'', June 17, 2009. Referenced 2012-07-13.</ref></blockquote>

==Criticism==
===Partisanism===

''[[The Economist]]'' cites critics of Krugman stating that "his relentless partisanship is getting in the way of his argument". In addition, a website (titled "Lying in Ponds") that tracks [[Partisan (political)|partisanship]] among public intellectuals rated Krugman second in the overall partisan slant of his columns, behind only [[Ann Coulter]].<ref name=economist/> As [[Richard Posner]] and economist [[Mark J. Perry]] note, the site, which uses careful statistical analysis to make assessments political partisanship, has ranked Paul Krugman the number 1 or number 2 most biased every single year from 2002-2008.<ref name=posner/><ref>{{Cite web  | last = Perry  | first = Mark J.  | authorlink = Mark J. Perry  | title = Paul Krugman: #1 Most Partisan Columnist in U.S.  | date = 2008-10-14  | year = 2008  | url = http://mjperry.blogspot.com/2008/10/paul-krugman-1-most-partisan-columnist.html  | accessdate = 2011-08-10}}</ref> 

''The Economist'' magazine supported the finding, noting the vast majority of Krugman's columns feature attacks on [[Republican Party (United States)|Republicans]] and almost none criticize [[Democratic Party (United States)|Democrats]], making him "a sort of ivory-tower folk-hero of the American [[Left-wing politics|left]]—a thinking person's [[Michael Moore]]" and that "a glance through his past columns reveals a growing tendency to attribute all the world's ills to [[George W. Bush|George Bush]]."<ref name=economist>{{Citation  | title = The one-handed economist  | newspaper = [[The Economist]]  | pages =   | year = 2003  | date = 2003-11-13  | url = http://www.economist.com/node/2208841  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref> And speaking on Krugman's recent "prophecy of doom" regarding the [[United States elections, 2010|2010 election]], the magazine calls it a "baseless partisan freakout".<ref>{{Citation  | title = Krugman's prophecy of doom   | newspaper = [[The Economist]]  | year = 2010  | date = 2010-10-29  | url = http://www.economist.com/blogs/democracyinamerica/2010/10/another_partisan_freakout  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref>

A study published in the [[peer-reviewed]] ''[[Econ Journal Watch]]'' examined statements from 17 economists from 1981 through 2009, and gauged the consistency of their stances on deficit spending and reduction during Republican and Democratic administrations. According to the study, Krugman was the only economist of the 17 to "significantly" change his stance on the federal budget deficit for partisan reasons.<ref>{{Citation  | last = Barkley  | first = Brett  | title = When the White House Changes Party, Do Economists Change Their Tune on Budget Deficits?  | journal = [[Econ Journal Watch]]  | volume = 7  | issue = 2  | pages = 119-156  | date = 2010-05  | year = 2010  | month = May  | url = http://econjwatch.org/articles/when-the-white-house-changes-party-do-economists-change-their-tune-on-budget-deficits  | jstor =   | doi =   | id =   | mr =   | zbl =   | jfm = }}</ref>

This finding of inconsistency was supported when ''[[The Wall Street Journal]]'' (WSJ) showed that Krugman contradicted his own findings in order to criticize Republican policy. When Republican [[United States Senate|Senator]] [[Jon Kyl]] stated that unemployment relief doesn't create new jobs and in fact is a disincentive for unemployed individuals to seek new work, Krugman called it a "bizarre point of view" and stated that "What Democrats believe is what textbook economics says [...] But that's not how Republicans see it". [[James Taranto]] of the WSJ reproduced a passage from a textbook called ''Macroeconomics'' which states: "The drawback to [unemployment benefits] is that it reduces a worker's incentive to quickly find a new job." The authors of the textbook are Paul Krugman and [[Robin Wells Krugman|his wife]].<ref>{{Citation  | last = Taranto  | first = James  | author-link = James Taranto  | title = Mirror, Mirror  | newspaper = [[The Wall Street Journal]]  | year = 2010  | date = 2010-03-05  | url = http://online.wsj.com/article/SB10001424052748703915204575103720332317434.html  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref> This led [[John H. Hinderaker|John Hinderaker]] of the [[Conservatism in the United States|conservative]] [[Claremont Institute]] to proclaim: "only the existence of [[Frank Rich]] prevents Krugman from being the world’s worst columnist."<ref>{{Cite web  | last = Hinderaker
  | first = John  | authorlink = John H. Hinderaker   | title = Krugman Vs. Krugman  | publisher = [[Power Line]]  | date = 2010-03-06   | url = http://www.powerlineblog.com/archives/2010/03/025752.php  | accessdate = 2011-08-10}}</ref>

In 2008, economist [[Peter Boettke]] noted: "[Over the years] Krugman's work devolved from science to [[ideology]] and finally to political partisanship" and that Krugman "has used his platform as an economist and as a columnist for the New York Times for his Democratic partisanship purposes."<ref>{{Cite web  | last = Boettke  | first = Peter | authorlink = Peter Boettke   | title = Political Economist  | publisher = [[Forbes]]  | date = 2008-10-13   | archiveurl = http://web.archive.org/web/20081016034623/http://www.forbes.com/opinions/2008/10/13/krugman-nobel-economics-oped-cx_pb_1013boettke.html  | archivedate = 2008-10-16 | url = http://www.forbes.com/opinions/2008/10/13/krugman-nobel-economics-oped-cx_pb_1013boettke.html | accessdate = 2011-08-10}}</ref>

Author and [[United States Court of Appeals for the Seventh Circuit|federal appeals court judge]] [[Richard Posner]] called Krugman "an unabashed Democratic partisan who often goes overboard in his hatred of the Republians." [sic]<ref name=posner>{{Citation  | last = Posner  | first = Richard  | author-link = Richard Posner  | title = The Good Paul Krugman and the Bad Paul Krugman  | newspaper = [[The Atlantic]]  | year = 2009  | date = 2009-06-03  | url = http://www.theatlantic.com/business/archive/2009/06/the-good-paul-krugman-and-the-bad-paul-krugman/18718/  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref>

Economist [[Donald J. Boudreaux|Donald Boudreaux]] has stated that Krugman does "a disservice to non-'liberal' scholars as well as to scholarship generally" by asserting that serious thinking is done only by Krugman himself and other liberals.<ref>{{Citation  | last = Boudreaux  | first = Don  | author-link = Donald J. Boudreaux  | title = Open Letter to Paul Krugman  | date = 2011-06-19  | year = 2011  | url = http://cafehayek.com/2011/06/open-letter-to-paul-krugman-2.html  | accessdate = 2011-08-10}}</ref>

Liberal journalists also openly point out Krugman's obvious political bias: ''[[New York Magazine]]'' called Krugman "the leading exponent of a kind of liberal purism" that he is "not altogether comfortable with, but it is [a role] he has sought."<ref name=nymag>{{Citation  | last = Wallace-Wells   | first = Benjamin  | author-link =   | title = What’s Left of the Left  | newspaper = [[New York Magazine]]  | pages =   | year = 2011  | date = 2011-04-24  | url = http://nymag.com/news/politics/paul-krugman-2011-5/  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref> [[American liberalism|Liberal]] journalist and author [[Michael Tomasky]] in ''[[The New York Review of Books]]'' stated "Many liberals would name Paul Krugman of The New York Times as perhaps the most consistent and courageous—and unapologetic—liberal partisan in American journalism."<ref>{{Citation  | last = Tomasky  | first = Michael   | author-link = Michael Tomasky  | title = The Partisan  | newspaper = [[The New York Review of Books]]  | year = 2007  | date = 2007-11-22  | url = http://www.nybooks.com/articles/archives/2007/nov/22/the-partisan/  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref>

Liberal historian [[Michael Kazin]] has stated Krugman’s account of the [[Right-wing politics|right]] succumbed to the [[Marxist]] flaw of false consciousness: "Unlike what Krugman says, conservatism is not some kind of smoke screen for another agenda."<ref name=nymag/>

===Contradictions===
Krugman has garnered a reputation for contradicting himself on many occasions. When documenting such inconsistencies several writers have made references to such an occurrence being commonplace: "It's not newsworthy when Paul Krugman contradicts himself."<ref name=states/> "Not that you needed any more evidence that New York Times columnist Paul Krugman is a flip-flopping charlatan..."<ref name=entitlement/> "This just in: New York Times columnist Paul Krugman is a raging hypocrite. You'll be shocked to find out, I'm sure."<ref>{{Citation  | last = Markay  | first = Lachlan  | author-link =   | title = Paul Krugman Favored Raising Retirement Age Until GOP Proposed It  | newspaper = [[NewsBusters]]  | date = 2011-04-26  | url = http://www.newsbusters.org/blogs/lachlan-markay/2011/04/26/paul-krugman-favored-raising-retirement-age-until-gop-proposed-it  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref>

In addition to the instance reported in the WSJ ([[Paul Krugman#Partisanism|see above]]), a single article published in the conservative online magazine ''[[The American Thinker]]'' documents Krugman making contradictory statements in a wide variety of topics. He is documented as stating that when [[deficit]]s are high [[interest rate]]s are low, and when governments run up a deficit, interest rates rise. He argued that higher [[national debt]] and spending were bad for people early in their careers, as they would have to pay for it later in life, and nearly twenty-five years later, he argues that the national debt is not a problem, as it never needs to be paid off. Krugman argued it is not the debt that matters, but rather the [[debt-to-GDP ratio]]. But in an open letter to [[Alan Greenspan]] he asserted, "...you obviously realize that the ratio of debt to G.D.P. is a highly misleading number." He has argued that [[Social Security]] is sustainable and unsustainable, opposed government-run health care before supporting government-run health care, and opposed the bailout of [[Fannie Mae]] before congratulating the government for the bailout of Fannie Mae.<ref name=contradiction/> 

Krugman has stated [[labor unions]] and higher wages cause [[unemployment]], as well as stating labor unions create a stable [[middle class]], and lower wages have a [[Recession|contractionary]] effect on the economy (which is characterized in part by unemployment). He has argued that governments do not cause recessions and are not responsible for [[business cycle]]s, but he also blames the [[Presidency of George W. Bush|Bush administration]] for the current [[recession]]. Krugman claimed that nothing the government has done has had an impact on the economy, and states that government actions are like using a water pistol to shoot an elephant -- but he also claims that "big government" saved the economy. He declared that workers' fears of losing jobs to workers in China and India due to [[globalization]] aren't irrational, when he earlier stated that those who blamed the global economy for the loss of jobs were "silly."<ref name=contradiction>{{Citation  | last = Kumar  | first = Arvind  | title = Paul Krugman, the Self-Contradicting Economist  | newspaper = [[The American Thinker]]  | year = 2010  | date = 2010-06-23  | url = http://www.americanthinker.com/2010/06/paul_krugman_the_selfcontradic.html  | archiveurl = http://www.webcitation.org/60M5qaItY  | archivedate = 2011-07-21  | accessdate = 2011-08-10}}</ref>

[[Conservatism in the United States|Conservative]] blogger and political commentator [[Michelle Malkin]] noted that in April 2011, Krugman assailed [[entitlement]] reform advocates, lamenting that "the fervor with which Washington types call for raising eligibility ages is a ‘tell’: it shows how disconnected they are from the way the other half lives (and dies)"  and called life expectancy "more and more a class-related issue." But in 1996 he called similar proposals (such as raising the age of eligibility for federal entitlements) "sensible".<ref name=entitlement>{{Cite web  | last = Malkin  | first = Michelle  | authorlink = Michelle Malkin  | title = Paul Krugman: For entitlement reform before he was against it  | date = 2011-04-26  | year = 2011  | url = http://michellemalkin.com/2011/04/26/paul-krugman-for-entitlement-reform-before-he-was-against-it/  | accessdate = 2011-08-10}}</ref>

In 2007, Krugman berated then-Senator [[Barack Obama]] for worrying about the future of Social Security, stating Obama had been misled by "decades of scare-mongering about Social Security’s future from conservative [[ideologue]]s." Economist and former Chairman of the [[Council of Economic Advisors]] [[N. Gregory Mankiw|Greg Mankiw]] responded by stating that "Paul's interpretation seems to be based on either a faulty memory or an especially inclusive definition of what constitutes a conservative ideologue", pointing out that not only did [[Democratic Party (United States)|Democratic]] President [[Bill Clinton]] voice similar concerns, but that he was under advisement of well-known economist and non-conservative [[Edward Gramlich]], whom Krugman had in the past praised as being particularly prescient.<ref>{{Cite web  | last = Mankiw  | first = Greg  | authorlink = N. Gregory Mankiw  | title = In Search of Ideologues  | date = 2007-11-16  | url = http://gregmankiw.blogspot.com/2007/11/in-search-of-ideologues.html  | accessdate = 2011-08-10}}</ref> In addition, less than a month prior, Mankiw had previously pointed out Krugman's contradiction on Social Security when he quoted from an interview in which Krugman stated it is "one of the best" federal government programs in terms of funding, and that it's not for certain the program has a problem. However, as Mankiw shows, Krugman himself stated ten years earlier that crisis loomed ahead when the baby boomers would start to retire around year 2010.<ref>{{Cite web  | last = Mankiw  | first = Greg  | authorlink = N. Gregory Mankiw  | title = Krugman vs Obama  | date = 2007-10-28  | url = http://gregmankiw.blogspot.com/2007/10/krugman-vs-obama.html  | accessdate = 2011-08-10}}</ref>

In an open letter to ''[[The New York Times]]'' [[Donald J. Boudreaux|Donald Boudreaux]] pointed out that Krugman suggested trade with low-wage countries poses real problems for high-wage America, despite years earlier penning a paper stating that wages are determined by worker productivity.<ref>{{Cite web  | last = Boudreaux  | first = Donald J.  | authorlink = Donald J. Boudreaux  | title = Strange Case of Dr. K and Mr. K  | date = 2008-01-05  | url = http://cafehayek.com/2008/01/strange-case-of.html  | accessdate = 2011-08-10}}</ref>

Columnist Tom Bevan asked in 2009 how Krugman reconciles a call for [[economic stimulus]] while at the same time arguing that additional environmental regulations and taxes are needed to avert the "utter catastrophe", outlining that stricter environmental policies such as carbon taxes, capping emissions, and additional regulations come at a cost to the economy.<ref>{{Citation  | last = Bevan  | first = Tom  | author-link =   | title = Krugman's Contradiction  | newspaper = [[RealClearPolitics]]  | date = 2009-07-13  | url = http://www.realclearpolitics.com/articles/2009/07/13/krugmans_contradiction_97433.html  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref> While Krugman normally dismisses claims that debt reduces growth, he criticized the Bush tax cuts in 2005 for increasing the deficit.[http://krugman.blogs.nytimes.com/2005/10/18/the-bush-tax-cuts-and-the-deficit/]

Economist [[Robert P. Murphy|Robert Murphy]] has documented so many contradictions made by Krugman that he has coined the term "Krugman Kontradiction" or "Klassic Krugman".<ref name=states>{{Cite web
  | last = Murphy
  | first = Robert P.
  | authorlink = Robert P. Murphy
  | title = Caught: Krugman's Shifting Arguments
  | work = 
  | publisher = [[Ludwig von Mises Institute]]
  | date = 2011-03-03
  | url = http://mises.org/daily/5086
  | accessdate = 2011-08-10}}</ref>
<ref name=austerity>{{Cite web
  | last = Murphy
  | first = Robert P.
  | authorlink = Robert P. Murphy
  | title = A Krugman Kontradiction?
  | date = 2010-06-10
  | url = http://consultingbyrpm.com/blog/2010/06/a-krugman-kontradiction.html
  | accessdate = 2011-08-10}}</ref> 
<ref name=QEcontra>{{Cite web
  | last = Murphy
  | first = Robert P.
  | authorlink = Robert P. Murphy
  | title = Yet Another Krugman Kontradiction
  | date = 2010-11-23
  | url = http://consultingbyrpm.com/blog/2010/11/yet-another-krugman-kontradiction.html
  | accessdate = 2011-08-10}}</ref>
<ref name=PIGS>{{Cite web
  | last = Murphy
  | first = Robert P.
  | authorlink = Robert P. Murphy
  | title = Yet Another Krugman Kontradiction?
  | date = 2011-03-30
  | url = http://consultingbyrpm.com/blog/2011/03/yet-another-krugman-kontradiction-2.html
  | accessdate = 2011-08-10}}</ref>
<ref name=stimulus>{{Cite web
  | last = Murphy
  | first = Robert P.
  | authorlink = Robert P. Murphy
  | title = Klassic Krugman Kontradiction
  | date = 2011-05-19
  | url = http://consultingbyrpm.com/blog/2011/05/klassic-krugman-kontradiction.html
  | accessdate = 2011-08-10}}</ref>
<ref name=WW2>{{Cite web
  | last = Murphy
  | first = Robert P.
  | authorlink = Robert P. Murphy
  | title = Another Krugman Kontradiction?
  | date = 2010-07-07
  | url = http://consultingbyrpm.com/blog/2010/07/another-krugman-kontradiction.html
  | accessdate = 2011-08-10}}</ref>
<ref name=hangover>{{Cite web
  | last = Murphy
  | first = Robert P.
  | authorlink = Robert P. Murphy
  | title = Krugman In Support of the Hangover Theory?
  | date = 2010-12-30
  | url = http://consultingbyrpm.com/blog/2010/12/krugman-hangover-theory.html
  | accessdate = 2011-08-10}}</ref>
<ref name=hangover>{{Cite web
  | last = Murphy
  | first = Robert P.
  | authorlink = Robert P. Murphy
  | title = Krugman Has Booted the Hackers From His Blog Account
  | date = 2010-06-11
  | url = http://consultingbyrpm.com/blog/2010/06/krugman-has-booted-the-hackers-from-his-blog-account.html
  | accessdate = 2011-08-10}}</ref>

===False claims===
Columnist Richard Baehr has written several pieces documenting false and contradictory statements by Krugman. In August 2005, Baehr published a series of articles detailing Krugman's continuous misrepresentation of facts surrounding the [[United States presidential election, 2000|2000 Presidential election]] and votes cast in Florida.<ref name=biglie>{{Citation  | last = Baehr  | first = Richard  | title = Krugman's Big Lie  | newspaper = [[The American Thinker]]  | date = 2005-08-20  | url = http://www.americanthinker.com/2005/08/krugmans_big_lie.html  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref><ref>{{Citation  | last = Baehr  | first = Richard  | title = More baloney from Krugman  | newspaper = [[The American Thinker]]  | date = 2005-08-23  | url = http://www.americanthinker.com/2005/08/more_baloney_from_krugman.html  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref> (A gaffe that was also noted by [[Michelle Malkin]]<ref>{{Cite web  | last = Malkin  | first = Michelle   | authorlink = Michelle Malkin  | title = The Krugman Correction  | date = 2005-08-26  | url = http://michellemalkin.com/2005/08/26/the-krugman-correction/  | accessdate = 2011-08-10}}</ref><ref>{{Cite web  | last = Malkin  | first = Michelle   | authorlink = Michelle Malkin  | title = Krugman's Correction  | date = 2005-09-15  | url = http://michellemalkin.com/2005/09/15/krugmans-correction/  | accessdate = 2011-08-10}}</ref><ref>{{Cite web  | last = Malkin  | first = Michelle   | authorlink = Michelle Malkin  | title = Yet Another Krugman Korrection  | date = 2005-10-02  | url = http://michellemalkin.com/2005/10/02/yet-another-krugman-korrection/  | accessdate = 2011-08-10}}</ref>, [[Donald Luskin]]<ref>{{Citation  | last = Luskin  | first = Donald   | author-link = Donald Luskin  | title = It’s the Truth that Counts  | newspaper = [[National Review]]  | date = 2005-08-24  | url = http://www.nationalreview.com/nrof_luskin/luskin200508240848.asp  | accessdate = 2011-08-10}}</ref><ref>{{Cite web  | last = Luskin  | first = Donald   | authorlink = Donald Luskin  | title = Krugman Officially Corrects His Florida 2000 Lies  | newspaper =   | date = 2005-08-26  | url = http://www.poorandstupid.com/2005_08_21_chronArchive.asp#112503484243947813  | accessdate = 2011-08-10}}</ref><ref>{{Citation  | last = Luskin  | first = Donald   | author-link = Donald Luskin  | title = Third Time’s Not a Charm  | newspaper = [[National Review]]  | date = 2005-09-13  | url = http://old.nationalreview.com/nrof_luskin/luskin200509130821.asp  | accessdate = 2011-08-10}}</ref><ref>{{Cite web  | last = Luskin  | first = Donald   | authorlink = Donald Luskin  | title = Hell Freezes Over at The New York Times  | newspaper =   | date = 2005-10-01  | url = http://www.poorandstupid.com/2005_09_25_chronArchive.asp#112822299822124760  | accessdate = 2011-08-10}}</ref>, [[Mickey Kaus]]<ref>{{Citation  | last = Kaus  | first = Mickey  | author-link = Mickey Kaus  | title = The "Two Atta" Theory  | newspaper = [[Slate (magazine)|Slate]]  | date = 2005-08-21  | url = http://www.slate.com/?id=2124546&%2523overfisk  | accessdate = 2011-08-10}}</ref>, and Patterico<ref>{{Cite web  | last = Patterico  | first =   | title = Paul Krugman Just Can’t Get It Right  | date = 2005-08-26  | url = http://patterico.com/2005/08/26/paul-krugman-just-cant-get-it-right/  | accessdate = 2011-08-10}}</ref><ref>{{Cite web  | last = Patterico  | first =   | title = Paul Krugman Prettifies His Own History of Misstatements  | date = 2005-09-16  | url = http://patterico.com/2005/09/16/paul-krugman-prettifies-his-own-history-of-misstatements/  | accessdate = 2011-08-10}}</ref>, among others.) Baehr closed the series stating: "The continuous rise of the internet has enabled critics to hyperlink source material proving Krugman's lack of integrity. Krugman simply could not get away with his lies if he were required to post hyperlinks [...] Why is the New York Times still employing a serial liar in its op ed pages?"<ref>{{Citation  | last = Baehr  | first = Richard  | title = More Krugman lies: the Great Unraveling continues  | newspaper = [[The American Thinker]]  | date = 2005-08-26  | url = http://www.americanthinker.com/2005/08/more_krugman_lies_the_great_un.html  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref> 

In 2010 Baehr detailed Krugman's August 23 column on extending the Bush tax cuts as being "not merely misleading; it is an outright and deliberate fabrication."<ref>{{Citation  | last = Baehr  | first = Richard  | title = Paul Krugman Is a Liar: Does the New York Times Care?  | newspaper = [[The American Thinker]]  | date = 2010-08-23  | url = http://www.americanthinker.com/2010/08/paul_krugman_is_a_liar_does_th.html  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref>

In 2003 Krugman falsely accused conservatives of embracing the [[lump of labour fallacy]], when the paper he cited did not commit the error.<ref name=economist/>

James D. Agresti documented Krugman claiming total government spending had fallen under the Obama administration, then changing his claim to say it had remained flat, both of which were shown to be false according to the data published by the federal [[Bureau of Economic Analysis]].<ref>{{Citation  | last = Agresti  | first = James D.  | author-link =   | title = Paul Krugman's Jihad  | newspaper = [[The American Thinker]]  | date = 2010-10-27  | url = http://www.americanthinker.com/2010/10/paul_krugmans_jihad_1.html  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref> This led economist [[Robert P. Murphy|Robert Murphy]] to ask: "Is Krugman just lying now?"<ref>{{Cite web  | last = Murphy  | first = Robert P.  | authorlink = Robert P. Murphy  | title = Is Krugman Just Lying Now?  | date = 2010-10-11  | url = http://consultingbyrpm.com/blog/2010/10/is-krugman-just-lying-now.html  | accessdate = 2011-08-10}}</ref>

Economist [[Robert Higgs]] noted that in a telephone news conference Krugman commented the [[Late-2000s recession]] "in fact" resembles the [[Great Depression]]. Higgs mentions various measures, including the [[unemployment rate]], [[Gross domestic product|GDP]] decline, commercial bank failures, and others, all which empirically contradict Krugman's claim.<ref name=depression/>

===Economics===

''[[The Economist]]'' notes that in addition to his obvious partisanism, "even [Krugman's] economics is sometimes stretched." He used [[game theory]] to argue that [[George W. Bush|President Bush]] was probably encouraging [[North Korea]] to become a more dangerous nuclear power. The magazine notes that while "this probably did not convince most game theorists",  it still in effect gives lay readers "the illusion that Mr Krugman's perfectly respectable personal political beliefs can somehow be derived empirically from economic theory." Krugman is also said to have embraced the concept of the [[There ain't no such thing as a free lunch|free lunch]]—"even though as an economist he should know better."<ref name=economist/>

Economist and former [[United States Secretary of the Treasury]] [[Lawrence Summers|Larry Summers]] has stated Krugman has a tendency to favor more extreme policy recommendations because "it’s much more interesting than agreement when you’re involved in commenting on rather than making policy."<ref name=nymag/>

Krugman's contradictions and alleged poor economic reasoning have led to much attention, particularly in the [[blogosphere]] and the economics community. "[Krugman] has made a habit of distortion [...] Several website [sic] have sprung up to deconstruct each Krugman column,and others respond to specific errors, which are routine."<ref name=biglie/> Economist [[William L. Anderson|Bill Anderson]] maintains a website dedicated solely to documenting Krugman's errors and inconsistencies, called "Krugman-in-Wonderland".<ref>{{Cite web  | last = Anderson  | first = William L.  | authorlink = William L. Anderson  | title = Welcome to Krugman-in-Wonderland!  | date = 2010-01-20  | url = http://krugman-in-wonderland.blogspot.com/2010/01/welcome-to-krugman-in-wonderland.html  | accessdate = 2011-08-10}}</ref> [[United States House of Representatives elections in Massachusetts, 2012|U.S. House Republican candidate]] Jeff Semon founded a similar website titled "KrugmanIsWrong.com" to document Krugman's inaccuracies.<ref>{{Cite web  | last = Semon  | first = Jeff  | authorlink =   | title = About  | work =   | publisher = KrugmanIsWrong.com  | url = http://www.krugmaniswrong.com/about/  | format =   | accessdate = 2011-08-10}}</ref>

Calling him a "doctor of (bad) economics", [[Sheldon Richman]] has pointed out inconsistencies and conflicting notions in Krugman's prescription for [[international trade]] and domestic [[social safety net]]s.<ref>{{Citation  | last = Richman  | first = Sheldon  | author-link = Sheldon Richman  | title = Paul Krugman, Doctor of (Bad) Economics  | newspaper = [[The Freeman]]  | date = 2008-01-04  | url = http://www.thefreemanonline.org/columns/tgif/the-goal-is-freedom-paul-krugman-doctor-of-bad-economics/  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref>

In 2002 [[William L. Anderson|Bill Anderson]] documented Krugman's notion that health care is the only industry in which improvements in knowledge and the development and acquisition of capital drive ''up'' costs, not reduce them, as laws of economics dictate. Anderson says Krugman's assessment "provides ample proof that one can be called an 'economist,' yet not know much about economics."<ref>{{Cite web  | last = Anderson  | first = William L.  | authorlink = William L. Anderson  | title = "Bad Medicine" or Bad Economics?   | publisher = [[Ludwig von Mises Institute]]  | date = 2002-03-20  | url = http://mises.org/daily/917  | accessdate = 2011-08-10}}</ref>

Economist and former Chairman of the [[Council of Economic Advisors]] [[N. Gregory Mankiw|Greg Mankiw]] stated he was left scratching his head when Krugman claimed a [[Tobin tax]] on foreign exchange trades is possible because "modern trading is a highly centralized affair", with a majority of transactions settled at a single London-based institution. Mankiw points out that if taxes made transacting in London even slightly more expensive, companies could easily move elsewhere, thus making the tax useless, and Krugman's claim null.<ref>{{Citation  | last = Mankiw
  | first = Greg  | author-link = N. Gregory Mankiw  | title = Is a Tobin Tax feasible?  | date = 2009-11-27  | year = 2009  | url = http://gregmankiw.blogspot.com/2009/11/is-tobin-tax-feasible_27.html  | accessdate = 2011-08-10}}</ref>

Investor and businessman [[Jim Rogers]] said of Krugman "He doesn't know anything about economics. He's an idiot."<ref>{{Cite video  | people = [[Jim Rogers]]  | title = Freedom Watch  | medium = Television production  | format = [[Flash video]]  | publisher = [[Fox Business Network]]  | url = http://www.youtube.com/watch?v=fWe3jyqRo-4  | location = [[New York City]]  | date = 2010-10-16 | accessdate = 2011-08-10}}</ref>

===Nobel Prize===
Upon Krugman's award of the [[Nobel Memorial Prize in Economic Sciences|Nobel Memorial Prize in Economics]], many in the economic community voiced disapproval. [[Peter Boettke]] stated "the Swedes just made perhaps the worst decision in the history of the prize today in naming Paul Krugman the 2008 award winner [...] today I would say is a sad day for economics, not a day to be celebrated."<ref>{{Cite web  | last = Boettke  | first = Peter  | authorlink = Peter Boettke | title = You Cannot Be Serious! Paul Krugman's Nobel Prize | date = 2008-10-13  | url = http://austrianeconomists.typepad.com/weblog/2008/10/you-cannot-be-s.html  | accessdate = 2011-08-10}}</ref> Economist [[William L. Anderson|Bill Anderson]] deemed the announcement indicative "that outright political partisanship is not a deterrent to winning."<ref>{{Citation  | last = Anderson  | first = William L.  | author-link = William L. Anderson  | title = A Socialist Laureate  | newspaper = [[Forbes]]  | date = 2008-10-13  | url = http://www.forbes.com/2008/10/13/krugman-nobel-economics-oped-cx_wla_1013anderson.html  | archiveurl =  | archivedate =  | accessdate = 2011-08-10}}</ref> [[Russell Roberts (economist)|Russell Roberts]] of [[George Mason University]] called it "just another reminder that those of us who believe in liberty are in for a long time in the intellectual wilderness."<ref>{{Cite web  | last = Roberts  | first = Russell  | authorlink = Russell Roberts (economist)  | title = Krugman's prize  | date = 2008-10-13  | url = http://cafehayek.com/2008/10/krugmans-prize.html  | accessdate = 2011-08-10}}</ref> [[Robert Higgs]] stated Krugman’s selection made a travesty of the prize and constitutes "an insult to the few excellent economists [...] who have received the prize in the past." Higgs wrote: "For economists who would like the Nobel Prize to mean something, today is a very sad day."<ref name=depression>{{Cite web  | last = Higgs  | first = Robert  | authorlink = Robert Higgs  | title = Krugman’s Bizarre Comparison  | publisher = [[The Independent Institute]]  | date = 2008-10-13  | url = http://blog.independent.org/2008/10/13/krugmans-bizarre-comparison/  | accessdate = 2011-08-10}}</ref>

In a 2010 [[video blog]], [[investment broker]] and financial-economic commentator [[Peter Schiff]] stated "if they ever took away Nobel Prizes for something that shows a complete lack of understanding of economics, certainly Paul Krugman would be the first candidate where the commission asked for their Nobel Prize back."<ref>{{cite video |people = [[Peter Schiff]] |date = 2010-03-16 |title = Dollar, Paul Krugman |url = http://www.youtube.com/watch?v=11WlFlO_mDg |format = [[Flash video]] |publisher = Schiff Report  |medium = [[Video Blog]] |location = [[Stamford, Connecticut|Stamford]] |archiveurl =|archivedate= |accessdate = 2011-08-10}}</ref>

==Praised by Austrians==
While noting the many differences with Paul Krugman, James Miller has pointed out that many bloggers who promote the Austrian point of view commend Krugman's older, lesser-known book, ''Pop Internationalism''. The book is a collection of 13 essays highlighting the benefits of free trade and showing the fallacies of protectionism. After all, Krugman won the Nobel Prize for his contributions to "new trade theory," not for his continuing calls for massive stimulus spending and raising taxes on the rich, nor for accusing conservatives of being monsters bent on impoverishing the whole country.

Krugman's basic premise throughout the book is that free and globalized trade is not something a wealthy country such as the United States should fear, but rather something it should embrace. Protectionist fears of free trade such as "massive unemployment" and "trade deficits" are unjustified according to Krugman, because:

{{cquote|what drives trade is comparative rather than absolute advantage. Maintaining productivity growth and technological progress is extremely important; but it is important for its own sake, not because it is necessary to keep up with international competition.}}

Krugman points out that the idea of a country adopting an industrial policy to help certain "high-value" industries to be competitive in the world economy is superfluous. "Why," Krugman asks, "weren't private markets already doing their job?" He goes on to state that "the productivity of the average American worker is determined by a complex array of factors, most of them unreachable by any government policy." 

To top off his embrace of market efficiency over government policy, he even goes on to acknowledge that government intervention to improve competitiveness can ultimately lead to "misallocations of resources." That is not a far cry from the inflation-induced "[[malinvestment]]s" that the likes of Mises, Hayek, and Rothbard have warned about for the past century.

Throughout Pop Internationalism, Paul Krugman makes a great case for how free trade and the global economy raise the living standards of both wealthy and impoverished nations. Despite the book's flaws, writes Miller, Krugman does a great job at dismissing unfounded fears about free trade.<ref name="Miller_5296">James E. Miller. [https://mises.org/daily/5296/The-Good-Krugman "The Good Krugman"], ''Mises Daily''. Referenced 2012-11-18.</ref>

==Notes==
{{reflist|2}}

==Links==
* [http://mises.org/daily/3194 Consumers Don't Cause Recessions] by Robert P. Murphy, November 2008, about 'demand-side' economics
* [http://mises.org/daily/5086/Caught-Krugmans-Shifting-Arguments Caught: Krugman's Shifting Arguments] by Robert P. Murphy, March 2011
* {{md|6055|Charting Fun with Krugman|Robert P. Murphy|May 2012}}
* [http://consultingbyrpm.com/blog/2013/02/paul-krugmans-eyes-are-smiling.html Paul Krugman’s Eyes Are Smiling] by Robert P. Murphy, February 2013
* {{md|105|Epstein Responds|Gene Epstein|December 1998}}
* [http://mises.org/journals/qjae/pdf/qjae6_4_2.pdf Apoplithorismosphobia] (pdf) by Mark Thornton, 2003
* [http://mises.org/daily/4121 Krugman Fails to "Get It" on Japan] by William L. Anderson, March 2010
* [http://web.mit.edu/krugman/www/ricardo.htm Ricardo's Difficult Idea] by Paul Krugman, March 1996
* {{cb|2012/04/paul-vs-paul-the-video/|Paul vs. Paul: the Video|Daniel J. Sanchez|April 2012}}
* [http://www.valuewalk.com/2012/06/paul-krugman-versus-kenneth-rogoff-on-europe/ Paul Krugman versus Kenneth Rogoff on Europe] by Jacob Wolinsky, June 2012
* [https://www.youtube.com/watch?v=EX55BH97quk&feature=player_embedded Paul Krugman: "¡Acabad ya con esta crisis!"] (video, partially in Spanish; esp. watch from 35:20 economist Pedro Schwartz; from 48:20 Krugman's reply)
* {{md|6372|Krugman&#39;s Call for a Housing Bubble|Daniel J. Sanchez|February 2013}}
* [http://econlog.econlib.org/archives/2013/02/krugman_and_a_c.html Krugman and a Critic on the Minimum Wage] by David Henderson, February 2013
* [http://www.slate.com/articles/business/the_dismal_science/1997/03/in_praise_of_cheap_labor.single.html In Praise of Cheap Labor] by Paul Krugman, March 1997
* [http://www.foreignpolicyjournal.com/2013/08/23/denying-feds-role-in-housing-bubble-paul-krugman-exposes-his-intellectual-dishonesty/ Denying Fed’s Role in Housing Bubble, Paul Krugman Exposes His Intellectual Dishonesty] by Jeremy R. Hammond, August 2013
* [http://cafehayek.com/2014/01/i-dont-know-what-to-call-this-post.html I don’t know what to call this post] by Russ Roberts, January 2014
* {{md|6651|Krugman Claims Mises Couldn’t Explain the Great Depression|Joseph T. Salerno|January 2014}}
* [http://topics.nytimes.com/top/opinion/editorialsandoped/oped/columnists/paulkrugman/index.html Paul Krugman Columnist Page - The New York Times]
* [http://pkarchive.org/ pkarchive - The Unofficial Paul Krugman Archive]
* [[Wikipedia:Paul Krugman|Paul Krugman]] on Wikipedia

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[[Category:Economists]]
[[Category:Nobel Prize in Economics]]