Some very good words from Tyler Cowen on Raghu Rajan

by Ryan Streeter on May 10, 2012. Follow Ryan on Twitter.

Tyler Cowen has a good summary of reactions to Rajan’s Foreign Affairs essay, which I highlighted last week here.

He’s especially good on kicking at Krugman’s cantankerous haphazardness. But I wanted especially to highlight these words from Cowen:

If we could get many “one time” gains today, for five or ten years running, that would be excellent and would boost growth and create jobs, whether or not we would be boosting the rate of innovation twenty years out.  Krugman in other contexts argues for such gains all the time and with great vehemence and certainty, not with the faux temporary agnosticism exhibited above [i.e., a quote Cowen highlights].

I think the focus on a series of one-time gains is exactly what we need now. I fear we won’t get such gains for awhile on a national scale, but we may very well get them regionally. If we could get more places like Texas, with a series of distinct gains over a period of time, that would ultimately be good for more than just those regions.