In the last few weeks, what began as a semi-civil battle of ideas between “saltwater” Keynesians of Krugman’s persuasion and “freshwater” economists of the Chicago school has escalated into a two-way barrage of insults and name-calling.It still is not well-understood that "freshwater" and "saltwater" are terms applied to what was going on in the field of macroeconomics in the 1970s. This post also refers to the "Chicago School." If Bloomberg Businessweek had actually figured this out, they would call the opposing movement "Minnesota Macro," Eugene Fama would not be a member of the movement, and John Cochrane would be a semi-member. If Robert Lucas were identified as a member of the Minnesota Macro movement, that would be correct.
Friday, February 10, 2012
The world may be catching on to the fact that the economics profession is not entirely on board with the ideas of Paul Krugman. We still have some work to do though: