Debate con Martin Wolf (cont.)

Martin Wolf


@ Luis Arroyo, We are not in the 1970s. That is the whole point. 

If you think South Korea's success was built on following the precepts of Milton Friedman, you are sorely deluded. Moreover, the view that aggregate demand has to be managed is not in any way inconsistent with the view that markets are an essential driver of economic progress. If by the "hard core" you mean the latter, I agree. But if you mean by the "hard core" the view that the private sector economy is always and at all times in full equilibrium, then I disagree. The view is simply ludicrous. 

You may be aware that in physics, there is both relativity and quantum, both of which appear to be true in their own domains, but betweeen which there is, as yet, no accepted synthesis. Are you convinced that economics is so much more advanced than physics? We are very far indeed from a grand unified theory of economics. The theories we have work under specific and narrow assumptions. The fact that you want to believe we know more than we do, does not make what you want to believe true.

Luis H Arroyo | August 26 4:50pm | Permalink

Nooo, I speak only of this hard core, obviously.
I only mean that Reaganism had virtuous effects; in U.S. for example, a much lower rate of unemployment consistent with low inflation.
And Thatcherism in the UK was simply miraculous. Remember...
I know that countries have adapted their ciscunstancias hard core, but all have moved away from statism to a crony capitalism. i´m sure that Spain cann´t work as US, for instance. Niether as Germany...
I Criticize harshly what some call Keynesianism, which they interpret as more and more and more deficit. At no time did I think of Keynes as dumb as they seem to think about it.