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Thu Oct 11, 2018, 12:34 PM

The Trouble With Macroeconomics

Paul Romer

Stern School of Business -New York University

Wednesday 14th September, 2016

Abstract

For more than three decades, macroeconomics has gone backwards. The
treatment of identification now is no more credible than in the early 1970s
but escapes challenge because it is so much more opaque. Macroeconomic
theorists dismiss mere facts by feigning an obtuse ignorance about such simple
assertions as "tight monetary policy can cause a recession." Their models
attribute fluctuations in aggregate variables to imaginary causal forces that
are not influenced by the action that any person takes. A parallel with string
theory from physics hints at a general failure mode of science that is triggered
when respect for highly regarded leaders evolves into a deference to authority
that displaces objective fact from its position as the ultimate determinant of
scientific truth.

https://paulromer.net/wp-content/uploads/2016/09/WP-Trouble.pdf

10 replies, 185 views

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Response to Troll2 (Original post)

Thu Oct 11, 2018, 01:55 PM

1. It astounds me that so few economists can distinguish between "supply and demand" and ..

"quantity supplied and quantity demanded."

Unless and until they can make the distinction they are just pulling suppositories out of their anuses.

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Response to freedumb2003 (Reply #1)

Fri Oct 12, 2018, 03:49 AM

3. "if you build it they will come"

the american model of consumerism proves that demand can be induced for any product that is supplied.

reduction of the equations of macroeconomics to slogans results in the general economic ignorance prevalent today.

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Response to rampartb (Reply #3)

Fri Oct 12, 2018, 06:38 AM

4. You're quoting a movie about a man playing baseball with ghosts and applying it to

people who never made that claim.

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Response to Charlie Mike (Reply #4)

Fri Oct 12, 2018, 06:48 AM

6. i'm talking about pet rocks.

and beanie babies "worth" $thousands.

i'm talking about pt barnum and donald trump.

i'm talking about the millions of kids who want to grow up to be kanye west.

but i should consider my audience

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Response to rampartb (Reply #6)

Fri Oct 12, 2018, 06:54 AM

7. Oh. So, as commissar of production you would determine what people can buy.

If you think they don't need something or if what they want is too frivolous, you'll just decree that it shall not be made.

Never mind that it proves people have disposable income, rather than living on subsistence wages, or that it's economic activity giving people jobs, or that it's harmless fun.

ALL THINGS MUST BE DEDICATED TO PEOPLE'S GLORIOUS STATE EVEN IF THE PEOPLE WANT SOMETHING ELSE!

Could commies possibly be pettier shits?

You're just pissed because the people you denigrate as easily led around aren't following you. If they were so easily led you wouldn't be whining, you'd be leading.

dafuggowdahere

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Response to rampartb (Reply #3)

Fri Oct 12, 2018, 11:47 AM

10. In this case you are so right

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Response to Troll2 (Original post)

Thu Oct 11, 2018, 03:27 PM

2. "turning the dial to zero"

Science, and all the other research fields spawned by the enlightenment, survive
by "turning the dial to zero" on these innate moral senses. Members cultivate the
conviction that nothing is sacred and that authority should always be challenged. In
this sense, Voltaire is more important to the intellectual foundation of the research
fields of the enlightenment than Descartes or Newton.

By rejecting any reliance on central authority, the members of a research field can
coordinate their independent efforts only by maintaining an unwavering commitment
to the pursuit of truth, established imperfectly, via the rough consensus that emerges
from many independent assessments of publicly disclosed facts and logic; assessments
that are made by people who honor clearly stated disagreement, who accept their
own fallibility, and relish the chance to subvert any claim of authority, not to mention
any claim of infallibility.

https://paulromer.net/wp-content/uploads/2016/09/WP-Trouble.pdf

Thank you for the link...

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Response to uncledad (Reply #2)

Fri Oct 12, 2018, 06:41 AM

5. Lefty only says such things when they're trying to tear down the people who reject them.

But as soon as they get their foot inside the door of power their own ideas become sacrosanct and it is blasphemy to challenge them.

Lefty is a hypocrite, if nothing else.

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Response to Charlie Mike (Reply #5)

Fri Oct 12, 2018, 09:40 AM

8. Disambiguation.

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Response to uncledad (Reply #8)

Fri Oct 12, 2018, 09:43 AM

9. Gesundheit

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