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Pop Internationalism, by Paul Krugman (MIT Press, Cambridge, 1996), pp. xiv + 221, ISBN 0 262 11210 8, AUD$39.95, Hardback.
Paul Krugman is one of the economics discipline's leading trade theorists, but one who has always recognized the importance of the link between theory and policy. Conventional wisdom is always much stronger than the real evidence, suggests Krugman (p. 136). This term appears again and again in the book to describe what Krugman considers to be policy prescriptions and understandings based on 'bad economies'. In this collection of writings, Krugman seeks to challenge some of the widely held views, or 'myths' as he prefers to call them, on the implications and impact of the growing globalization of the world economy. He is particularly concerned with the nature of the public debate taking place in the United States. Much of the discussion and analysis presented in the book does, in fact, relate to the North American experience, with some comment on the situation in Japan and the European Union (EU). Although this focus on large, open economies tends to ignore or downplay some areas which might be relevant for smaller trading nations, the fundamental thrust of the 'economics' which is presented is of universal application.
Krugman laments the fact that more academic economists do not actively participate in the public discourse and, consequently, are having little impact in policy areas. This in itself is a comment on today's world where the media increasingly informs and shapes the debate in a growing number of areas. A related aspect of this trend is the move to shorten or simplify the message, and to sensationalize the packaging. Krugman observes that in public discussion of the international economy, the running is being increasingly made by the 'pop internationalists' - an assortment of writers, journalists and commentators who receive considerable media attention. Krugman does not shy away from being controversial in his attack on what he terms self-styled experts. He roundly criticizes their intellectual laziness and terms like 'ignorant' and 'self-deluded' are used freely. In particular, Krugman is critical of the economists among them whom he considers should 'know better'. The 'pop analysts' are shown to have trouble grasping either basic concepts, data or both. Included in his attack are...