Monday, March 09, 2009

And they all moved away on the Group W bench

Willem Buiter eviscerates the modeling assumptions of modern macroeconomics.

My favorite line:

"The irony of modelling liquidity by imposing money as a constraint on trade was lost on the profession."

The whole thing is well worth reading.

1 comment:

Norman said...

"...and creating a nuisance," and they all came back over, shook my hand, and we had a grand time there on the bench...