Krugman is Astonishingly Ignorant About the Global Financial Crisis

Margin Call (2011)

The Policy Tensor has long admired Krugman's crusade against zombie ideas in economics perpetuated by the political economy of K Street. But his latest demonstrates a remarkable ignorance of the causal mechanism behind the Global Financial Crisis (GFC):

True, nobody saw the crisis coming. But that wasn’t because orthodoxy had no room fo…