ARTICLE BY A POOR ECONOMIST AND POOR POLICY STRATEGIST
In a recent speech delivered at Oxford University the renowned economist appears to have turned away from his neo-classical roots by suggesting that the British government was returned to power due to economic circumstances that (to a great extent) it engineered in a strategically planned and calculated fashion. The conclusion one draws will likely be a result of one's particular view of political-economy, but Krugman's position certainly provides impetus for discussion and conjecture… whether or not his theory holds is questionable, though it highlights many an interesting aspect of current politico-economic thinking.
As a strategy professional, and long time reader of international economics and politics, I am surprised at the position taken by Professor Krugman. No doubt government intervention is a contributor to – and a facilitator of – economic stimulus or cooling, but the point he makes is rather elusory, difficult to sustain and runs counter to his previous neo-classical positions. A leading light of the neo-classical school Krugman railed against "Statist Theories" of economic development such as those which provided government-driven explanations for certain East-Asian economies rapid economic growth post WWII.