Wednesday, January 17, 2018

An Opportunity For Austrian School Economists To Do a Little Target Shooting



Mainstream macroeconomists are experiencing an unusual degree of self-doubt at the present time. 

They know they didn't see the 2008 financial crisis (though Austrians did). And they don't seem to understand the current, what they consider, sluggish recovery.

Their self-doubt has reached such epic proportions that they are openly discussing it as if they were laying on a Freudian couch.

Papers and papers were read at the recent American Economic Association annual meeting held this year in Philadelphia on the problems with macroeconomics.

And consider this report from Financial Times columnist Martin Sandbu:
There have been several efforts to rethink macroeconomics after the global financial crisis, which hardly any macroeconomists saw coming. The field’s reputation has not been helped by the protracted weak recovery (or worse: in continental Europe macroeconomic policymakers gratuitously provoked a second recession in 2011). 
The most impressive post-crisis effort of rethinking how macroeconomics should be done, by many of the field’s top practitioners, has just been completed. It digs deeper than some earlier efforts we have commented on, and mines a richer seam as a result. In a series of posts this week, Free Lunch will cover the writings collected in the latest issue of the Oxford Review of Economic Policy. Devoted to the “Rebuilding macroeconomic theory project”, all the articles are free to view until February 7. 
Here is the table of contents to that issue:

Rebuilding macroeconomic theory

ARTICLES 




Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 1–42, https://doi.org/10.1093/oxrep/grx062
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 43–54, https://doi.org/10.1093/oxrep/grx045
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 55–69, https://doi.org/10.1093/oxrep/grx054
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 70–106, https://doi.org/10.1093/oxrep/grx057
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 107–131, https://doi.org/10.1093/oxrep/grx044
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 132–155, https://doi.org/10.1093/oxrep/grx053
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 156–168, https://doi.org/10.1093/oxrep/grx052
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 169–194, https://doi.org/10.1093/oxrep/grx060
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 195–218, https://doi.org/10.1093/oxrep/grx050
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 219–251, https://doi.org/10.1093/oxrep/grx051
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 252–268, https://doi.org/10.1093/oxrep/grx061
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 269–286, https://doi.org/10.1093/oxrep/grx058
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 287–328, https://doi.org/10.1093/oxrep/grx055
Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages 329–347, https://doi.org/10.1093/oxrep/grx056

STANDING MATERIAL

Oxford Review of Economic Policy, Volume 34, Issue 1-2, 5 January 2018, Pages NP, https://doi.org/10.1093/oxrep/grx059
There is a remarkable degree of auto-dubium displayed in these papers. It is the time to strike. Austrians having a better grasp of business cycle theory and the property methodology for the study of economics, along with street cred in predicting the crisis, should have no problem in blasting these papers. And because they are experiencing so much self-doubt at presence, perhaps we can influence a couple.

Austrian school professors, grad students and other Austrian scholars should really have a go at these papers. It should be easy target practice for us.

 -RW

No comments:

Post a Comment