New York Magazine on Paul Krugman

''If you were looking at the American economy during the eighties and nineties, you could enjoy a certain measure of serenity. Economists celebrated the Great Moderation—recessions were muted, fluctuations less pronounced—and economic science seemed sophisticated enough to permit policy-makers to predict and avoid catastrophe. “If you were domestic, the image you had was Alan Greenspan heroically fighting off all problems,” Krugman says. But if your focus was international, you saw crisis everywhere: Mexico, Asia, Russia, Brazil, Japan. And then there was Argentina, where the state stepped back just when it was needed most. If Domingo Cavallo, one of the elect, could preside over this collapse, then perhaps there but for the grace of God went Alan Greenspan. What Krugman took from Argentina—and what he thinks even liberals in Washington missed—was “a certain level of understanding,” he says, “that important people have no idea what they’re doing.”''

NYM