Tuesday, April 21, 2009

Cochrane on Ancient Keynesianism

University of Chicago economist Cochrane has produced one of the best statements yet about the use of cartoonish Keynesianism by the current administration and most of the press:
Professional economists, the guys I hang out with, are not reverting to ancient Keynesianism any more than physicists are going back to Aristotle when they can't understand how fast the universe is expanding.
He was probably trying to be gentle here. I'd say that the regression that we've been observing is more akin to a return to pre-Socratic animism.

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