by Mario Rizzo
The Social Science Research Council invited a number of economists to comment on the current financial and economic situation. I was happy to be asked and to contribute. Here it is. Above my post you will find the contributions of Robert Reich and other “prominent” economists.
December 11, 2008 at 9:33 am
Mario:
I read your comment for the Social Science Research Council. Let me just say, You were right on!
Nicely, clearly, and persuasively done.
You definitely qualify as a “prominent economist.” How do I know this? It’s obvious — you agree with me!
Richard Ebeling
December 11, 2008 at 12:33 pm
Mario,
A very important point, very well made. My favorite sentence: “In my view investor and consumer confidence follows the correction of the underlying causative distortions and does not precede them.”
December 11, 2008 at 7:31 pm
The distinction between the micro and the macro approach, the essential complexity of the economy, these are extremely important points. You make them very well.
I like to think of government spending as research grants given to macro-economists, without peer-review, so that they can launch gigantic experiments based on shaky conjectures. The curious thing is that these experiments are made with our own livelihoods, while if the same money were to be given to, say, the physicists, the consequences would only be felt by some rocks on Mars.
December 11, 2008 at 11:13 pm
Great post, Mario. At my blog I titled it, “Mario Rizzo Reminds Macroeconomists About Economics.”
December 11, 2008 at 11:29 pm
Thanks very much, Bob! I appreciate the comments at your blog.