News

Edmund Phelps's piece in the New York Times: "The Economy Needs a Bit of Ingenuity"

August 07, 2010

Center Director Edmund Phelps has published an op-ed, "The Economy Needs a Bit of Ingenuity" in the New York Times of August 7, 2010. In it he takes issue with the idea that a deficiency of "aggregate demand" stands in the way of a recovery of employment and insists that recovery depends on boosting long-term business investment, primarily by opening up the economy to greater innovation. The piece has precipitated a range of reactions. A thoughtfulcommentary by Sir Gavyn Davies was published August 11 in his blog at FT.com. Fareed Zakaria referred to it in his August 8 appearance on Charlie Rose. Paul Krugman attacked the structuralist interpretation in his Times blogAugust 7 and earlier in his August 2 column.