Friday, January 8, 2016

The Krugginator on microfoundations

I was wondering what K-dog had to say about microfoundations, so I googled:

The Krugmeister - the microfoundation thing.

Yeah. He's not a fan. Apparently I'm going to be Langranging up the wazoo all year just so I can learn yet another fantasy sci-fi story. Oh good.

And, even better, here's his 2009 NYT article on how the economists "missed" the 2008-9 financial system ultracollapse and tanks-in-the-streets near-second-Great-Depression, which even made our textbook author Stephen Williamson go all Hulk Smash.

Pretty impressive! I'm personally going to skip the "perfectly rational consumer" bit for myself, though, and just question whether or not any of the model presented in class this year makes sense in terms of the fact the US market is essentially oligopolies and monopsonies, not even remotely competitive markets.

If I get really interested I'll even shoehorn in some Douglass North.

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