Todd Zywicki, one of my many superb GMU colleagues over in the law school, exposes here the superficiality of some of Paul Krugman’s analysis of both the facts and the economics of financial markets and regulations. Todd is devastatingly on target.
One of the aspects that strikes me most notably about Krugman’s writing on this issue – and, of course, Todd corrects Krugman admirably – is that Krugman uses the word “monopoly” here in an utterly jejune and political-populist manner. Krugman sounds here, not like a Princeton scholar, but, rather, like a vessel who’s channeling the ghost of Huey Long or some other long-dead Depression-era pol screaming for love from voters whose economic misinformation ran as deeply as did their desperation.
