A couple of days ago, the International Monetary Fund (IMF) made a courageous mea culpa (nostra culpa?, pdf, p.41) that its economists had been very wrong in their economic modeling for many years when they claimed that Austerity would have economic benefits that exceeded its costs. In short, the IMF admitted that supply-side-advocated government Austerity doesn't work in depression conditions, and that neo-Keynesian demand-side economists like Joseph Stiglitz, Brad Delong, and Paul Krugman had been correct all along.

In a NY Times blog post this morning that I will admit is hard to read, Paul Krugman uses the IMF's admission to call out the GOP for following the same flawed supply-side economic modeling that the IMF just repudiated:

"The reality is that everything that has happened economically since the turn away from stimulus to austerity, from interest rates to inflation to output, has refuted the doctrine the GOP is pushing. Since there has of course been no concession of error, this does not bode well for the US economy if Romney wins."

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