tag:blogger.com,1999:blog-6245381193993153721.post5241267426163330996..comments2024-03-17T00:23:24.896-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Palley versus Foster and McChesney: The Causes of the CrisisLord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6245381193993153721.post-61117164938135326652011-12-15T22:44:53.244-08:002011-12-15T22:44:53.244-08:00Christof,
"Austrian ABCT did not arise out o...Christof,<br /><br />"Austrian ABCT did not arise out of the rational expectations school."<br /><br />Your above statement is false. In orthodox Austrian econ circles, many people see Hayek as a person that was a pioneer to the concept of rational expectations. To validate my point, here is <a href="http://thinkmarkets.wordpress.com/2011/12/07/yes-paul-it-is-hayek-versus-keynes/#comment-11480" rel="nofollow">Jerry O'Driscoll</a> on Hayek and on why he should be regarded highly in mainstream macro economics. <br /><br />"Hayek did invent the concept of neutral money, which is at the center of much of modern macroeconomics. <i>Along with Mises and Wicksell, he also incorporated the core of what we now call rational expectations into his analysis.</i> The fact is that much of modern macroeconomics (particularly of the fresh water variety) owes a great deal to Hayek."<br /><br />On a side note, I find it completely weird that the majority of Austrians defend Hayek and his influence on mainstream economic theory. Austrian Econ used to praise itself on being part of the heterodoxy, I guess things change, huh.Isaac"Izzy"Marmolejohttp://radicalsubjectivist.wordpress.com/noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-1600064876767042732011-12-14T13:49:05.554-08:002011-12-14T13:49:05.554-08:00Oh look, an Austrian defending ideas that came out...<i>Oh look, an Austrian defending ideas that came out of the Rational Expectations movement.</i><br /><br />I don't adhere to the rational expectations school. I consider it preposterous.<br /><br />Austrian ABCT did not arise out of the rational expectations school.<br /><br />If you asked any Austrian today:<br /><br />"Do you believe agents' predictions of the future value of economically relevant variables are not systematically wrong in that all errors are random, or that the agents inside the rational expectations model all assume the model's predictions are valid?"<br /><br />They'd respond with an unequivocal no.Christofnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-49968533789258266372011-12-14T10:46:48.166-08:002011-12-14T10:46:48.166-08:00Oh look, an Austrian defending ideas that came out...Oh look, an Austrian defending ideas that came out of the Rational Expectations movement.<br /><br />(Should we tell him?)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-55882175148020823822011-12-14T08:50:00.638-08:002011-12-14T08:50:00.638-08:00No mention of Austrian theory of the business cycl...No mention of Austrian theory of the business cycle? You're clearly being purposefully ignorant. Pretending like it doesn't exist won't make it go away and won't change it from being true to being false.<br /><br />I mean, your position is that depressions are caused by a lack in aggregate demand, and therefore you advocate that legalized counterfeiters print and spend money on themselves and their friends, as if this is supposed to benefit poor people who have to pay higher prices than they otherwise would have paid, and you say this as if Goodhart's law doesn't apply to aggregate spending targets.<br /><br />You do know Goodhart's law, don't you? The Lucas critique?<br /><br />Your position is pie in the sky nonsense.Christofnoreply@blogger.com