Wednesday, April 08, 2009

I agree. With one exception

This list of prinicples for getting us out of the Depression and avoiding them in the future are generally good principles in life all the time.

I only take issue with this one:

3. People who were driving a school bus blindfolded (and crashed it) should never be given a new bus. The economics establishment (universities, regulators, central bankers, government officials, various organisations staffed with economists) lost its legitimacy with the failure of the system. It is irresponsible and foolish to put our trust in the ability of such experts to get us out of this mess. Instead, find the smart people whose hands are clean.

I think it's important to note that with the notable exception of the Chicago & Montana Schools of Economics, which cling to the Treasury View, most University level economists were pretty accurate. It's the private sector economists & Bush administration economists that mostly got it wrong*

*Nate Silver did a nive little post that broke down the predictions of "eonomists" in the media. It showed 2 things: the number of academic economists consulted was very low. And that they were accurate while the rest (mostly Bank Economists) were horribly wrong. I can't find the post...

Updated: found it.


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