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I have the advantage of hindsight but this quote comes from Robert E Lucas Jr, 5 years before great recession. > macroeconomics in this original sense has succ
by kilotaras 9y ago
I have the advantage of hindsight but this quote comes from Robert E Lucas Jr, 5 years before great recession.
> macroeconomics in this original sense has succeeded: Its central problem of depression prevention has been solved, for all practical purposes [0]
[0] http://www.sfu.ca/~kkasa/lucas.pdf http://www.sfu.ca/~kkasa/lucas.pdf
- VHRanger 9y agoWell he's still sort of right. The 2008 shock was legitimately more intense than the 1929 one and we came out of it with a "mere recession" instead of the horrors of the 1930s. This is largely due to what the US fed did in response (the US gov. fiscal stimulus probably helped some but not on the same scale). Luckily the fed was headed by Ben Bernanke, one of the most erudite scholars of the Great Depression at the time the world economy was hanging on by a thread.