Brad Delong expresses my thoughts quite well: One of the dirty secrets of economics is that there is no such thing as “economic theory.” There is simply no set of bedrock principles on which one can base calculations that illuminate real-world economic outcomes. We should bear in mind this constraint on economic knowledge as the … Continue reading Two Types of Economists: Fact-based vs. Assumption/Fantasy-based
Month: July 2010
Debts & Deficit Are Not A Problem (until you reach full employment)
In the current media- and pundit-manufactured hysteria about the government budget deficit and sovereign debt, much has been made of a relatively recent book by Rogoff and Reinhart. It purports to find patterns of default by surveying 800 years of sovereign defaults. R&R conclude that somehow, magically, an 80% debt-to-GDP ratio will virtually ensure sovereign … Continue reading Debts & Deficit Are Not A Problem (until you reach full employment)
Things That Make Me Raging Mad and Sick At The Same Time
Of course, it's the BP spill: Washington's Blog posted pictures from the BP spill. Unfortunately these are the kinds of pictures the (is it still "our"?) government and BP are spending significant effort to prevent you from seeing. If you've ever enjoyed a beach or fished a wetland or canoed/kayaked or just watched beautiful creatures … Continue reading Things That Make Me Raging Mad and Sick At The Same Time
Seems the Rich Default Even More
Well, so much for the idea that the foreclosure crisis is /was due to those "irresponsible low-income people buying stuff they can't afford". It seems the rich are even less responsible: the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population. More than one in seven homeowners … Continue reading Seems the Rich Default Even More
EconProph 