The visible hand in economics

Unhappy the land that is in need of heroes

Posted on: December 10, 2008

Ed Prescott has written some pretty brainy stuff in his time. I’m particularly a fan of his work on dynamic inconsistency in economics with Finn Kydland. But, here we see why you should not make heroes of people.

Prescott to an Obama supporter who emigrated from Russia in 1990:

With people like you I understand why Ruyssians can not governed themselves.
. . .
Are you Russians goiung to getogether with the Germans again and split up Poland again? You invade Georgia.
. . .
In economics there is almost always one theory or no theory. You and your think a likes destroyed Russia and now are destroying the United States. Society needs religion to get around the time inconsistency problem. Your religion of Statism is a not a good religion.

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1 Response to "Unhappy the land that is in need of heroes"

I guess you need to be pretty far out there to believe that prices are truly perfectly flexible – eg the strict adherence to RBC theory. However, I didn’t expect him to be THAT far out there 😦

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