Thursday, February 9, 2017

Covering the same ground


Nick Rowe says:

if you don't start with money, monetary exchange, and AD and AS, you are doing macro wrong.

I think Nick is right. I often say:

The economy is transaction.

To my mind we're covering exactly the same ground.

//

As an afterthought I'll repeat what Nick said

if you don't start with money, monetary exchange, and AD and AS, you are doing macro wrong.

and I'll say: Yeah, that's why this is not even wrong not even economics.

1 comment:

The Arthurian said...

Covering the same ground, Ray Dalio says:

"An economy is simply the sum of the transactions that make it up. A transaction is a simple thing. Because there are a lot of them, the economy looks more complex than it really is."