Mythbuster Krugman

Krugman keeps trying to debunk conservative myths Did The Postwar System Fail?.

"And what I’m getting as a common response — including from liberals — is something along the lines of, ‘That’s all very well, but by 1980 the postwar system was clearly failing, so what would you have done instead of Reaganomics?’"

"How do we know that the postwar system was failing? Yes, there were some bad years — largely due to oil shocks — and there was stagflation. But stagflation was not, as far as I know — and as far as standard textbook economics says — the result of high taxes and/or excessive regulation; it was a problem of monetary policy. It’s a testimony to the strength of supply-side propaganda that so many people think they know differently."