And that's putting it charitably!
More likely the man is simply attempting to rejuvenate his reputation as an imminent economist.
But advocating "fiscal stimulus" as an antidote to depression while at the same time arguing for the repudiation or non-payment of national debts, is unlikely to cut the mustard! Exactly which banks or creditors will line-up to provide stimulus funds when you are telling them you are NOT going to pay the money back?!!
In his latest op-ed piece in the NYT, he is now citing recent developments in Europe as "proof" that "austerity" doesn't work!
"The good news is that many influential people are finally admitting that the confidence fairy was a myth. The bad news is that despite this admission there seems to be little prospect of a near-term course change either in Europe or here in America, where we never fully embraced the doctrine, but have, nonetheless, had de facto austerity in the form of huge spending and employment cuts at the state and local level."
But hold on, Paul! What austerity are we talking about, really? You mean the way European leaders worked together to stem the disorderly default of Greece and a potentially associated currency collapse?
As for budget cutting, does Krugman really think EU citizens are going to continue to fund more spending on Greek citizens than the Greek government pays for?
Perhaps the state of Georgia and its citizens ought to partner with California; then Georgia residents can be taxed to pay for Californians benefits?
When governments have reduced revenues it has been because they had to. And the cuts are not austere, but cuts necessary to bring spending and revenues in line. There has been NO end to the EU welfare state!
But why Paul, was it necessary, to make cuts? What happened to government revenues?
Was it because of macroeconomic policies such as those you endorsed and promoted that caused the hyperglobalization of the economy? Perhaps this led, again, to large wealth gaps between rich and poor and ended-up spawning a great bubble and bust cycle? Should the world not know, Paul, that this was the course you recommended?
So, there's where your criticism comes from. Citizens of the world just can't trust Paul Krugman; and for good reason.
Instead of using an Op-Ed piece to attempt to make U.S. policy-makers endorse fiscal stimulus, Krugman ought to make the case that such a policy "worked" in Japan. Most sources, however, believe those efforts turned a nasty recession into a decades long depression with no end in sight! No, thanks!
Krugman must STAY in academia. Someone said those who can't do, teach.
The King still remembers the remarkable accomplishments of two other Nobel Memorial/Economics Prize winners! Not content with creating an equation that described the valuation of derivatives, Merton and Scholes, unfortunately, actually put their idea into practice at Long Term Capital Management based in Greenwich, Connecticut.
Let's just say the "long term" description of their management prowess didn't work out as planned. True, the global economy was not instantly vaporized by their foolish antics; it was simply necessary for the U.S. Treasury and Federal Reserve to intervene in order to prevent that collapse! Thanks, a lot, guys!