Mental Monetary Disorders?
Krugman thinks Misesians suffer delusions. To prove his point, he retells a fantasy as reality. Hmmm. And here I thought the story of the baby sitting co-op was an allegory of the horrors of the state intervening in the market — the state fixing the value of its fiat currency against other goods and services.
According to Krugman, “I know that a lot of people refuse to accept the possibility of such things, and nothing will convince them that a monetary expansion can ever do real good. But they’re mistaking their own confusion for profound insight.”
Now, doesn’t that sound like delusion masquerading as insight?