A rhetorical question... Trevon D Logan: ’This is actually a deep point DeLong is making: we have not recognized the single largest market failure in the economy. And we rarely talk about it as a market failure at all. The answer: that’s how they wanted it when they sold it to you! Anyone who has seriously thought about equilibrium theory knows that the lack of attention to endowments is pretty shameful. DeLong extends that here to thinking of the weights we apply and why it should encourage, not discourage, redistribution. But we never quite get there…
Musgrave's point 2) is better outsourced to a competent Fed. If "fiscal policy" is maximizing national income according to points 1 and 3, it will still "look" Keynesian over business cycles, right?
You would think this is the single most important question before every Econ 101 class in the liberal arts curriculum and yet it is conspicuous by its absence. Why is that?
I remember this post well. I guess the reviewer who said Slouching was Second International Marxism was correct.
Musgrave's point 2) is better outsourced to a competent Fed. If "fiscal policy" is maximizing national income according to points 1 and 3, it will still "look" Keynesian over business cycles, right?
You would think this is the single most important question before every Econ 101 class in the liberal arts curriculum and yet it is conspicuous by its absence. Why is that?