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Thursday, September 30, 2010

DeLong: Economics for Parrots

More (all too rushed) between classes blogging. From Brad DeLong at Project Syndicate:

Economics for Parrots, by J. Bradford DeLong, Commentary, Project Syndicate: It is said that the early nineteenth-century British economist J.R. McCulloch originated the old joke that the only training a parrot needs to be a passable political economist is one phrase: “supply and demand, supply and demand.” Last week, US Federal Reserve Chairman Ben Bernanke said that McCulloch’s economics – the economics of supply and demand – was in no way discredited by the financial crisis, and was still extraordinarily useful.
It’s hard to disagree with Bernanke’s sentiment: economics would be useful if economists were, indeed, likeMcCulloch’s parrots – i.e., if they actually looked at supply and demand. But I think that much of economics has been discredited by the manifest failure of many economists to be as smart as McCulloch’s parrots were. ...[...continue reading...]...

    Posted by on Thursday, September 30, 2010 at 01:17 PM in Economics | Permalink  Comments (20)


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