The Current State of Economics

Easily summarized by a quote from my econometrics book (Introduction to Econometrics, third edition, by Stock and Watson):

“Rather, the slow rise of inflation is now understood to have occurred because of bad luck and monetary policy mistakes…” [my emphasis]

When you have to appeal to bad luck to theorize causality, you know your “science” is not doing very well.

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Posted on April 14, 2013, in Economics and tagged , , . Bookmark the permalink. Leave a comment.

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