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View Full Version : Disagreement Amongst Economists - a simple model



David G
03-21-2011, 04:13 PM
More common sense:

http://crookedtimber.org/2011/03/17/a-simple-model-of-disagreement-among-economists/#more-19344

David G
03-21-2011, 05:02 PM
Norman,

I came at it the other direction. Yes, the ongoing disagreements are interesting. The challenge - for me - being doggedly non-dogmatic - is to try and parse the truth from the twisting. Since I'm not a full-time academic, only a dilettante with a bit of book-larning, it's a fun to try and keep up (or catch up).

My academic work in economics came at a time when the Keynesian model had been very effective challenged by the 'freshwater economists'. Yet, the reading I had done convinced me that the Keynesian model - when used as a prescription for recessions or depressions - held a validity that had not been disproven empirically. Since late in the last century, Keynesian thought has re-established itself, but my view of it has not changed. There are some Keynsian economist that seem to view it as a cure-all. That seems misguided to me.

The real danger at the moment, though, seems to me to lie with those who are trying to avoid the necessary corrections to having swung the pendulum a bit far toward laissez-faire capitalism. It seems to me that we need to do all we can to revivify our economy, while minimizing the long-term consequences represented by the necessary deficit spending. If we don't correct, if we don't strengthen, streamline, and rationalize the regulations governing the financial sector (among others) - the payback has a good chance of being even uglier than the last two years has been.

Is is watching the economic analysis driven by partisan motives, or by calcified theoretical underpinnings (see Greenspan's latest rant)... and trying to sort the wheat from the chaff... that made this article so interesting to me.