Krugman on 21st century recessions

Following the big increase in the unemployment rate announced today (The un-recession):

What I suspect, however, is that this is what the 21st-century business cycle looks like. The sharp slumps of the past partly reflected an inflation-prone environment, in which the Fed occasionally had to slam on the brakes; it also reflected a mainly goods-producing economy, with lots of inventories, in which recessions had a lot to do with inventory adjustments.

Comments

[joshua corning]

Unemployment is a lagging indicator and even with the recent jump in unemployment figures are at historical lows.

Anyway reading Krugman is fun...now that the recession he has been predicting for the past 6 years never came he is trying to redefine what a recession is.

[joshua corning]

One bonus if Obama gets elected is that we will get Krugman to look at the pretty much the same economy we have now (maybe a little worse cuz of the slight increases to taxes) but he will be describing it as the best economy of all time.

[Scott Ferguson]

Ah yes, Joshua. Because remaining 1,400,000-1,600,000 jobs short of what would required to provide jobs for new entrants in the work force over the last 8 months is a sign that the economy is going swimmingly! Economists the likes of Krugman are just a bunch of Whiners (tm).

Since the definition of a recession was developed under a certain set of conditions, a thinking person would find it reasonable to revisit that definition if current conditions do not follow the original pattern .

[joshua corning]

Since the definition of a recession was developed under a certain set of conditions, a thinking person would find it reasonable to revisit that definition if current conditions do not follow the original pattern.

So we have an economic slow down not as severe as the down turn of 2000-2001 but we have to make it look worse then it really is so we will now call it a recession. Brilliant

Krugman is a hack, defending him only makes you look bad.

[odograph]

Recession Probability = 95%