When 2013 ended I couldn’t help pointing out that we passed Krugman’s famous “test” of market monetarism with flying colors. GDP growth was initially estimated as being slightly higher in 2013 than 2012 (comparing Q4 to Q4.)
Now the annual revisions are in for 2012 and 2013, and the new numbers look even worse for the Keynesians. Let’s start with the numbers that Keynesians always (wrongly) use as proxies for demand growth—RGDP:
2011:4 to 2012:4: 1.60%
2012:4 to 2013:3: 3.13%