1) Paul Krugman is right.
2) If your analysis leads you to conclude that Paul Krugman is wrong, refer to rule #1.
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Needless to say, Kartik Athreya’s analysis violates rule #2. That is all :).
– Badtux the Economics Penguin
PS: In the post where Delong disagreed with Krugman and formulated these laws, he was wrong and Krugman was right — the bank bailout *was* a woefully inadequate band-aid. Now that we’re 16 months down the road, we find that these laws of economics still hold true :).
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