Nobel Prize winner and stimulus spending booster Paul Krugman is being called out by the libertarians at the Ludwig von Mises Institute. They want Krugman to defend his Keynesian policy prescriptions in a debate with von Mises fellow Robert Murphy. Murphy espouses the Austrian school perspective that sees easy money and stimulus spending as obstacles to economic growth. The von Mises Institute has come up with a clever ploy: They’ve promised to donate $100,000 to the Fresh Food Program of FoodBankNYC.org if Krugman debates Murphy. How could a good liberal deprive a food bank of $100,000?
The group has started a campaign on the Web site The Point to raise the funds. Folks can pledge to the campaign, but they don’t have to pay anything unless the debate actually happens.
Murphy has produced an animated video explaining the challenge. Some good libertarian self-parody there.
If you need a primer on the debate between the Austrians and the Keynesians, see the recent mini-documentaries produced by EconStories.tv (you probably know them as the makers of the Hayek v. Keynes rap video Fear the Boom and Bust).