Ken Rogoff has a piece in ‘Project Syndicate’ on whether Trump’s fiscal policy would work. He appears open-minded, despite the obligatory caustic references to the President-elect. That is par for the course. But, he pulls no punches on his fellow academic travellers on the Left who thought that Obama should engage in fiscal stimulus but thinks that it would be a disaster under President Trump!:
Many left-wing economics commentators, having insisted for eight years under Obama that there is never any risk to US borrowing, now warn that greater borrowing by the Trump administration will pave the road to financial Armageddon. Their hypocrisy is breathtaking, even if they are now closer to being right….
…But beware of pundits who are certain that Trump will bring economic catastrophe. On election eve, New York Times columnist Paul Krugman unequivocally insisted that a Trump victory would lead to a stock-market collapse, with no recovery in sight. Investors who relied on his insights lost a lot of money. [Link]
Ken Rogoff gives it nicely back to Paul Krugman who hounded him, few years ago, on his calculation of the optimal Public Debt/GDP ratio and hinted that Rogoff was both sloppy and malevolent. Well, it could not have happened to nicer guy!