Is Krugman Now Pro-EMH?

Paul Krugman writes:

Andrew Leonard has a good point: if Obamacare is such a disaster for the economy, where’s the market reaction?
More broadly: the perceived probability of passage, as indicated by Intrade, was only around 30 percent a month ago (which is why I’m still rubbing my eyes). So the expectations of what we’re told would be a great disaster have risen dramatically. And the market has yawned.

I’m confused. Is Krugman is now praising efficient markets? I thought he was against all that.
Also, if the market falls from here, would that be enough for Krugman to support repealing healthcare reform? If there’s an Intrade contract for that, I’d be short.

Posted by on March 22nd, 2010 at 1:13 pm


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