Paul Krugman attributes the healthier state of international macroeconomics (i.e. him, Ken Rogoff, and company) than non-international macroeconomics (i.e. Ed Prescott, Robert Lucas, and company) to (a) the fact that reality in international macro had more of a Keynesian bias, and (b) the influence of Rudi Dornbusch. I actually think Paul understates the contribution of … Continue reading Yet Another Note on Understanding the Terrain of the Macroeconomics Debate