Wednesday, March 30, 2011
Recombinations pg 249-250
Warsh talks about Lucas's "Mechanics" Lectures which is simliar to Keynesian economics, but was slightly rejected by the freshwater economics of the time. However, it did shake up the field in early 1986. The Invisible Hand idea is once again brought up but has yet to be explained.
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A for Sue.
ReplyDeleteThe sense in which the field was shaken up was that people saw a technique that could answer questions that had gone unanswered because they couldn't be addressed with the tools at hand.
Professors try to do this with students, but its tough going: you tend to have more questions than willingness to look for answers.
Professionals are a bit different. They have questions too, but they look at the tools differently: can this tool help me answer that question, rather than why is that question unanswered.