Daily Archives: September 27, 2016


Rethinking Macroeconomic Theory Before the Next Crisis

Naked Capitalism has the silly article Rethinking Macroeconomic Theory Before the Next Crisis.

I just cannot understand all this flailing about while ignoring two fundamental issues. The first is taking into account criminal intent in the behavior of major players in any definition of rational expectations. The second is manipulation of economic and political systems to concentrate wealth the hands of the few. There is no laissez-faire economic system anywhere. Models that assume the opposite of reality have little chance in being useful except to the con artists that promote them. Maybe we should look into the corruption of academia in the fields of economics, business, and finance.

All the talk about any other details is a useless exercise when everyone refuses to see the elephant in the room.

Since Naked Capitalism does not show you other comments before you write your own, I had no idea that many of the other comments would agree with my analysis.