....you know it has to be bad economics.
At his blog, Greg Mankiw displays a Paul Krugman chart that breaks my first rule of economic data: you need to be able to understand in terms of human action the cause and effect elements of a chart.
The Mankiw Indicator is all about bad empirical application (that is no proper foundation in human actio), where I can think of at least 100 ways the supposed formula can break down in a way that would produce huge outliers.
First time I have read Krugman where the comments are argumentative about his thinking. Maybe the lefties are starting to realize the dangers of fantastical economics.
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