Rajan Joins the Blogosphere
Paul [Krugman] is, of course, a great theoretical Nobel-prize-winning economist, so his attacks must be taken seriously (and I did take his trade theory classes at MIT, in the interest of full disclosure). Unfortunately, much of the “Fannie and Freddie did not contribute to the crisis” battalion makes arguments that have serious holes. Since these arguments are so prevalent they need to be rebutted again and again (the claimed unwillingness to listen to argument can be played on both sides).
My advice to Rajan is to have a thin skin with respect to folks like Krugman and Brad DeLong. No matter how much the facts may be on your side, the arrogant rhetoric will be on theirs.