Of Krugman and Diocletian - Peter C. Earle - Mises Daily: "It is certifiably true that Krugman doesn't "defend" Diocletian's economic policies; rather, those advocated by him match those tried by Diocletian almost precisely. The Nobel Prize economist calls vociferously for higher taxes, which was a specific policy objective of the Roman emperor. He goads policy makers to create more money and target higher levels of inflation — which Diocletian did, with clearly adverse outcomes. Diocletian's massive buildup in both state-funded construction projects and a broadened state officialdom correspond neatly with Krugman's specification of greatly amplified state-employment initiatives.
But the inept tax, inflation, and price-fixing approaches of Roman emperors can, in part, be excused by virtue of their having had little history to consult alongside a limited number of economic theories, all of which were grounded in pantheistic theology. With 2,000 years of recorded history between the 3rd-century calamities of the Roman Empire and the present day — plus a handful of recent, well-documented economic crackups perusable amid a wide range of discredited economic theories — what excuses can Krugman offer?"
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