Paul Krugman: Everything New Is Old Again: There have been two big revolutions in macro…. The Keynesian revolution… tied to the Great Depression; then the new classical counterrevolution… loosely tied to stagflation in the 1970s…. Keynes offered a way to understand what was happening, and a solution…. Stagflation was predicted by Friedman and Phelps, using … Continue reading Evening Must-Read: Paul Krugman: Will University Economics Departments Help Us Understand Business Cycles?