(no subject)
http://blogsandwikis.bentley.edu/themoneyillusion/?p=695
virtually every cutting edge macro text says that monetary policy determines NGDP growth. And yet the moment a crisis hits we get a sort of mass amnesia, and reputable economists are suddenly assuming that the rapidly falling NGDP is not a failure of central banks, but rather of commercial banks. As if it is suddenly the job of commercial bankers to manage monetary policy!
This is a good time to trot out my favorite philosopher, Richard Rorty. In a recent book he quoted an old pragmatist maxim; “that which has no practical implications, has no philosophical implications.” I would re-word that slightly for the current discussion:
That which as no practical implications; has no implications for economic theory.
Thus Rorty suggested that it was pointless to argue about whether something is an objective fact or a justified belief, as we have no access to an extra-human perspective, and thus can never resolve the debate.
virtually every cutting edge macro text says that monetary policy determines NGDP growth. And yet the moment a crisis hits we get a sort of mass amnesia, and reputable economists are suddenly assuming that the rapidly falling NGDP is not a failure of central banks, but rather of commercial banks. As if it is suddenly the job of commercial bankers to manage monetary policy!
This is a good time to trot out my favorite philosopher, Richard Rorty. In a recent book he quoted an old pragmatist maxim; “that which has no practical implications, has no philosophical implications.” I would re-word that slightly for the current discussion:
That which as no practical implications; has no implications for economic theory.
Thus Rorty suggested that it was pointless to argue about whether something is an objective fact or a justified belief, as we have no access to an extra-human perspective, and thus can never resolve the debate.