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The only reason that we're in this mess in the first place is because academics took their eye off the ball and let the Chicago Schools of both business and economics in the 70s set the tone for the rest of what happened.

If I am not mistaken, the way that happened was that the economic crisis of the 1970's brought about stagflation, which contradicted the Phillips theory of a balance between unemployment and inflation. Friedman and Phelps jumped on that, showed that there was no theoretical basis for the Phillips curve and managed to convinced everyone that Keynes was superseded. Phelps just got the 2006 Nobel prize for that work.

Those whom the Gods wish to destroy They first make mad. -- Euripides

by Migeru (migeru at eurotrib dot com) on Tue Oct 17th, 2006 at 04:50:31 AM EST
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