Welcome to Applied Macroeconomic Centre

A theory is appropriate as long as it fits into the fact; when a theory doesn't fit in the fact, it's wise to walk with the fact.

Thursday, March 10, 2011

Solow on 2008 financial crisis

Two lessons Solow would like to see economists take to heart are that,

i) in the modern world, it is impossible to pursue macroeconomics without taking account of finance; and

ii) second, financial markets are not necessarily stable or self-correcting.

No comments:

Post a Comment