Dear Raghu, You quote this from me, but it appears from your response that I posted it on as shown below:
On Tue, Jul 17, 2012 at 6:32 PM, Sabri Oncu <sabri.oncu at gmail.com> wrote: > Now, that Shiller coauthored that "animal spirits" book with Akerlof, > and I disagree with both in that book dearly, as well as with Dani > Rodrik, Raghu Rajan and the like, elsewhere, but, can we call these > guys enemies? As you may remember, I posted this quite a while ago. You say this: > I think a safe rule is anyone who "defends Goldman Sachs and praises > finance" is an enemy. There are a lot of grey areas in life, but this > is not one of them. No disagreement with the above, but can we call Akerlof an enemy, for example? Here is what Akerlof wrote with Romer in 1993 in their "Looting" article: “Our theoretical analysis shows that an economic underground can come to life if firms have an incentive to go broke for profit at society’s expense (to loot) instead of to go for broke (to gamble on success). Bankruptcy for profit will occur if poor accounting, lax regulation, or low penalties for abuse give owners an incentive to pay themselves more than their firms are worth and then default on their debt obligations.” I am sorry, but I cannot call anyone who writes this an enemy. Best, Sabri _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
