Wednesday, 11 February 2015

Bullshit In, Bullshit Out: Money and Economic Models

According to Professor Richard A. Werner in a recent article,
The most widely used textbook in advanced Master-level economics at leading British universities in 2010 was Romer (2006)
Werner explains further that Romer tells us,
“Incorporating money in models of [economic] growth would only obscure the analysis” (p. 3).
Romer is apparently a New Keynesian economists.

This just adds to the list of plausible reasons why the money supply is more or less consistently ignored among mainstream economists and financial commentators. It also helps explain why these very same economists and their models failed to see the 2008 banking crisis and will err this time around as well. Bullshit in, bullshit out. I can only advise Queen Elizabeth II to ask somebody else for an explanation why the economy failed next time around.