Eclecticism and Concern: Columbia Students
DOI link for Eclecticism and Concern: Columbia Students
Eclecticism and Concern: Columbia Students book
The major contribution of the rational expectations in school is its policy implications. The idea comes from the functioning of financial markets in the sixties. Then in the eighties one comes to the macro aspect, and that the basic message is that the government cannot just cheat people by increasing aggregate demand. The basic message is quite clear, and it's useful for the management of the US economy. If one evaluates the school, one can see that the basic assumption is good and very helpful for the policymaking situation. What makes a good economist is the ability to take his own political biases and use current methodology and become so fancy that he can convince someone else that his underlying bias is true. The world has changed. It's not a mercantile world. There are things that occur that didn't occur thirty years ago, or twenty years ago, that are very important in the change—things like capital mobility.