I’ve been asked for reactions to Casey Mulligan’s piece about the failure of New Keynesian economics.The short answer is, he should try reading a bit of Keynesian economics — old or new, it doesn’t matter — before “explaining” what’s wrong with it. For the doctrine he’s attacking bears no resemblance to anything Keynesians are saying.This is fairly typical of freshwater economists. They know that what the other side is saying is obviously stupid, so there’s need to read it; they picked up enough about it talking to some guy in a bar, or whatever, to criticize it.
PK goes on to demonstrate how Mulligan basically just MAKES SHIT UP and attributes his own idiotic mental construct to Keynesians. Same as it ever was.
Here's the conclusion:
If Mulligan wants to argue that point, fine — but he presents as “the New Keynesian position” something that is just what he imagines, on casual reflection (or, again, maybe after talking to some guy in a bar) to be the New Keynesian position.
OK, so from now on I’ll assert that the Chicago position on unemployment is that we can cure it by sacrificing goats. Hey, I heard that somewhere — no need to actually read anything they say, right?