Shorter Summers: "If things had been different, God knows what would have happened!"
Yep. That's why we pay you so much, Larry. Now you run off and play with Moe and Curley... On Sat, Mar 30, 2013 at 12:12 PM, Jurriaan Bendien < [email protected]> wrote: > "A premise of virtually everything I studied in graduate school, and > virtually everything I taught as a professor of macroeconomics for some > years, was that a coherent model had an equilibrium, and if that > equilibrium changed, it would move to a new equilibrium. Surely the events > of the last few years call that proposition into question? If the world had > unfolded forward from 2007 with no policy actions taken, no lending of the > last resort, no expansionary monetary policy, no expansionary fiscal > policy, I would suggest to you that there is a real possibility that the > right approximation would have been an unbounded downward spiral, a > possibility ruled out in any textbook model, or almost any model published > in a journal in the last several decades. " > > Lawrence Summers, speech at the London School of Economics forum on "What > should economists and policymakers learn from the financial crisis?", > chaired by Prof. Mervyn King, 25 March 2013. > http://www2.lse.ac.uk/newsAndMedia/videoAndAudio/channels/publicLecturesAndEvents/player.aspx?id=1856 > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > > -- Cheers, Tom Walker (Sandwichman)
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