Have macroeconomists misdiagnosed the economic crisis?

Discussion in 'Economics' started by morganist, Mar 10, 2011.

  1. I think macroeconomists have misdiagnosed themselves.

    There is no such thing as "macroeconomy" or "microeconomy".

    The term "macro" was first used by "academia" to justify government intervention, manipulation and micromanagement of the economy.
  2. So your saying the problem is the whole concept of intervention in the first place?
  3. pupu


    Economics much like Psychiatry is a psuedo science.

    Not based on real science but rather opinions and their popularity and backup power so it's not surprising that it may fail at predictions when you mix things up a little.
  4. Good description. Unfortunately most economists think it is a pure science. You will like my work then. Look at the post What is morganist economics on my blog.
  5. Are you sure about that?

    Seems to me they are just dealing with the effect rather than the cause. The real cause is excessive debt, in short large scale insolvency. In my opinion insolvency is caused by rigid repayment structure. This is created with the principal investment based return calculations.
  6. I like the look of your new blog. :)

    Personally my gut feeling is Bernanke (being the student of the depression) is doing all he can to avoid what he feels are the mistakes of the Depression.

    But, what one may consider "mistakes" in gov't policy are natural forces and there is little more he can do.

    Perhaps if we rallied forces with a strong president and a more financially astute Congress there may be a glimmer of hope. In the meantime, it's everyman for himself.
  7. The first problem is managing the economy like a central planned one. The Fed has the most power to achieve this, and the government can do its part with tax policy.

    Laws and regulations are very different from "macro managing"
  8. Glass Steagel worked very well for fifty plus years.

    I agree the macro economic framework is counter productive. I think you would like my work.
    #10     Mar 10, 2011