Tuesday, November 12, 2013

Cochrane on Old vs. New Keynesianism

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 from the article:

Most of Washington policy analysis uses Keynesian models or Keynesian thinking. This is really curious. Our whole policy establishment uses a model that cannot be published in a peer-reviewed journal. Imagine if the climate scientists were telling us to spend a trillion dollars on carbon dioxide mitigation -- but they had not been able to publish any of their models in peer-reviewed journals for 35 years.

Source: John Cochrane, "New vs. Old Keynesian Stimulus," thegrumpyeconomist.com, November 8, 2013



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