Martin Sandbu has a truly interesting and excellent comment on my first, inital draft of thoughts for next week’s Blanchard-Rajan-Rogoff-Summers “Rethinking Macroeconomics” conference. But I do think he oversimplifies one crucial issue: dynamic efficiency. Elementary neoclassical growth theory tells us that to the extent that patience and tolerance for intergenerational inequality between the past and … Continue reading Dynamic Efficiency, Private Capital, and Taxpayer Investments in Government Wealth: A Response to Martin Sandbu