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Shorter list would be “solved problems in economics”. And how many economists pretend that expanding the money supply doesn’t increase inflation?

kolbe 4y ago
I don't know why you're getting downvoted. When I first took econ, we used a book by Gregory Mankiw that featured a list of 10 things that Economists generally agreed upon, and the percentage of Economists in some survey that agreed. I think the most agreed upon one was "people respond to incentives." And the second-most was "there's a short term inverse relationship between interest rates and unemployment." This was 20 years ago, and I think we're already at the point to where that second statement has been rendered obsolete. So, yeah, I think I agree that all that Economists have left is "people respond to incentives."
- guerrilla 4y ago
  Which isn't really even economics but just psychology or even biology...
MichaelDickens 4y ago
This list [1] shows answers from the IGM Economic Experts Panel polls where economists agree most strongly. There are lots of questions where economists show a consensus or near-consensus. You could consider those to be solved problem. [1] https://github.com/Aransentin/IGMscrape/blob/master/results.md https://github.com/Aransentin/IGMscrape/blob/master/results....
Hammershaft 4y ago
> And how many economists pretend that expanding the money supply doesn’t increase inflation? A live demonstration of the Dunning-Kruger effect in action. The effect of change in money supply on overall inflation is mediated by the velocity of that money. If the money supply were doubled but banks & consumers sat on the cash, stowing it under their mattresses, then there's no inflationary pressure on products to be had. Conversely, if an asteroid were to strike us in a year, then regardless of if the money supply was shrinking, if people were spending their life savings in days then inflationary pressure would skyrocket.
paulpauper 4y ago
And how many economists pretend that expanding the money supply doesn’t increase inflation? Japan spent decades trying to create inflation to no avail. Despite trillions in spending from 2008-2020 inflation was very low, until finally spiking in 2021.
jessaustin 4y ago
Economists are less certain about what causes inflation all the time. The current blast of inflation has been linked to market consolidation (e.g. monopoly) by some more adventurous economists. We wish economists would agree that monopoly is bad by some measure...

kolbe 4y ago

I don't know why you're getting downvoted. When I first took econ, we used a book by Gregory Mankiw that featured a list of 10 things that Economists generally agreed upon, and the percentage of Economists in some survey that agreed. I think the most agreed upon one was "people respond to incentives." And the second-most was "there's a short term inverse relationship between interest rates and unemployment." This was 20 years ago, and I think we're already at the point to where that second statement has been rendered obsolete. So, yeah, I think I agree that all that Economists have left is "people respond to incentives."

guerrilla 4y ago
Which isn't really even economics but just psychology or even biology...

MichaelDickens 4y ago

This list [1] shows answers from the IGM Economic Experts Panel polls where economists agree most strongly. There are lots of questions where economists show a consensus or near-consensus. You could consider those to be solved problem. [1] https://github.com/Aransentin/IGMscrape/blob/master/results.md https://github.com/Aransentin/IGMscrape/blob/master/results....

Hammershaft 4y ago

> And how many economists pretend that expanding the money supply doesn’t increase inflation? A live demonstration of the Dunning-Kruger effect in action. The effect of change in money supply on overall inflation is mediated by the velocity of that money. If the money supply were doubled but banks & consumers sat on the cash, stowing it under their mattresses, then there's no inflationary pressure on products to be had. Conversely, if an asteroid were to strike us in a year, then regardless of if the money supply was shrinking, if people were spending their life savings in days then inflationary pressure would skyrocket.

paulpauper 4y ago

And how many economists pretend that expanding the money supply doesn’t increase inflation? Japan spent decades trying to create inflation to no avail. Despite trillions in spending from 2008-2020 inflation was very low, until finally spiking in 2021.

jessaustin 4y ago

Economists are less certain about what causes inflation all the time. The current blast of inflation has been linked to market consolidation (e.g. monopoly) by some more adventurous economists. We wish economists would agree that monopoly is bad by some measure...