Sorry for the late answer, I have a life ;-) Anyway, I don't think our discussion is going to arrive anywhere. You ask for Krugman (who is a guy that I like b

Sorry for the late answer, I have a life ;-) Anyway, I don't think our discussion is going to arrive anywhere. You ask for Krugman (who is a guy that I like by the way) opinions: https://www.cnbc.com/id/46944145 https://www.cnbc.com/id/46944145 For me, what he says there is in clear contradiction with (for instance): https://www.sciencedirect.com/science/article/pii/S1057521915001477 https://www.sciencedirect.com/science/article/pii/S105752191... It seems to me that whatever it is what they put in their textbooks, even more important is what they put in their models. Here there is a good criticism of Krugman views: https://www.nakedcapitalism.com/2012/04/scott-fullwiler-krugmans-flashing-neon-sign.html https://www.nakedcapitalism.com/2012/04/scott-fullwiler-krug... But if they didn't solve it, we are not going to neither.