On Apr 2, 2015, at 12:00 PM, Tom Walker wrote:

> 
> 
> ------------------------------
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> Message: 6
> Date: Thu, 2 Apr 2015 07:39:08 -0700
> From: Tom Walker <[email protected]>
> Subject: [Pen-l] Economists discover the world!
> To: PEN-L list <[email protected]>
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> There is a buzz on the econoblogosphere about the debate about secular
> stagnation between Ben Bernanke, Larry Summers and Paul Krugman. Jared
> Bernstein breathlessly sums up the excitement: "we've made important
> diagnostic progress here by bringing the international dimension... into
> the discussion."
> 
> You mean to tell me that up to now economists have left out the
> international dimension?
> 
> -- 
> Cheers,
> 
> Tom Walker (Sandwichman)
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I looked for the buzz and didn't find the specific items Tom Walker refers to, 
but I did find some exchanges about the diagnosis of secular stagnation by the 
buzzers.  (buzzards?)

I was struck by how obvious it is that they all have an underlying foundation 
of existing full employment as they analyze the economy.  It is all about 
adjusting the equilibrium from one spot to another, whether it is where the 
demand for money curve crosses the supply of money curve and/or where the 
demand for anything shifts from Europe to Asia or North America.  It is all 
equilibrium, all the time.  

And these are the big name economists, utterly baffled by what's going on.  
They differ only in the need for stimulus vs the need for liquidity.  Or in one 
case, the need to do nothing.

Gene


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