Friday, April 29, 2011

Keynes-Hayek Round Two

This has been all over the policy blogoshere, but FLG'll post it anyway:

Again, FLG's Time Horizons Theory comes into play, but that's not terribly surprising given the primary example of focusing on the short run FLG uses is almost always Keynes. However, what did tickle FLG was when Hayek said this:
Econometricians, they're ever so pious.
Are they doing real science or confirming their bias?
Their Keynesian models are top down and neat,
but that top down approach is their fatal conceit.

The link between short run focus and empiricism is too seldom noted. Except by FLG, of course, but he's a motherfucking genius.

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