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Samuelson, on the other hand, was always a political operator first and a scientist a distant second.
- Jake Friends come and go. Enemies accumulate.
Solow was way ahead of most mainstreamers in calling bullshit on DSGE and the Lucas-Prescott program. Be nice to America. Or we'll bring democracy to your country.
So yeah I think Solow is quite justified in thinking that of himself as a scientist in contrast to the quacks and charlatans infesting the profession.
One could perhaps draw a distinction between Solow and Samuelson there. Not that I blame Samuelson for people like Lucas and Prescott (Lucas and Prescott ultimately own it), but he played a role in laying the foundation for those types. Be nice to America. Or we'll bring democracy to your country.
That, ultimately, is the fence in modern macroeconomics which distinguishes mullahs from scientists. And once you're on the wrong side of it, the difference down to von Mises and Greenspan is merely one of degree, not of kind.
Samuelson knew on which side his bread tenure and pension was buttered.
FIFY She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
Which Solow clearly thinks is completely idiotic. Be nice to America. Or we'll bring democracy to your country.
Its an admission that utility theoretic growth modelling can't explain the most important long term factor in economic growth. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
RBC theorists just tend to be wedded to it. Be nice to America. Or we'll bring democracy to your country.
To get markets that don't clear, you have to add (usually nominal) rigidities and imperfect competition, at which point your model becomes New Keynesian rather than RBC.
(NK models perform a lot better at forecasting, but a lot better than "fucking terrible" is still not good. Put it this way: Last I read, internal Federal Reserve forecasts were still putting both to shame.) Be nice to America. Or we'll bring democracy to your country.
... even though quite clearly it does not. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
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