Saturday, September 19, 2009

The State of Macro Economics

Thanks to Paul Krugman, the entire economics profession is undergoing a rare soul searching that ranges from indignation to Krugman's criticism to reinforcing his argument with new criticisms.

The attached note written by one of the calmer academics tries to be analytical and fair. It is. Yet it has the unintended effect, at least to me, of confirming how utterly out-to-lunch the mainstream academics have been in connecting with the world in which we live in.

Yes, they supposedly study the economy we all help build every day, 365 days a year. But if you can decipher what they are saying in plain English about our economy of which we are a part, I am all ears.

I salute their tireless effort. Don't get me wrong. But I cannot help but feel they are on a different planet solving irrelevant problems using obscure language and mathematics that are really only interesting to their own "fraternity" unrelated to ours.

And that's why I quit wanting to be an academic economist many years ago. For the record my macro economics professors back then represented both fresh and saltwater varieties and I found both wanting.

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