[lbo-talk] Credit crunch a myth?

Shane Taylor shane.taylor at verizon.net
Sat Jan 3 07:19:57 PST 2009


Michael Pollak wrote:


> Assuming arguendo that there is nothing misleading
> about the Minn Fed figures

There are relevant priors, as the econometricians like to say. I understood the Minneapolis Fed to be a bastion for Real Business Cycle theorists. Such theorists believe macro fluctuations are the result of external shocks and do not originate from within self-regulating markets. All flux is merely the self-correction to changes Out There by omniscient markets.

The Boston Fed has also responded to them:

<http://economistsview.typepad.com/economistsview/2008/11/there-is-too-a.html>

Shane



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