Evening Must-Read: Alan S. Blinder: What’s the Matter with Economics?

…and mainstream doctors are not held responsible for homeopathy…. John Cochrane, also of the University of Chicago… saying in 2009 that Keynesian economics is ‘not part of what anybody has taught graduate students since the 1960s. [Keynesian ideas] are fairy tales that have been proved false.’ The first statement is demonstrably false; the second is absurd…. Madrick’s second bad idea, Say’s Law… really is bad…. Madrick also tabs ‘low inflation is all that matters’ as a bad idea, which it is. But again, who believes it?… Perhaps you can imagine my surprise when I read that ‘economists in general are Friedman’s handmaidens.’… Eugene Fama…. As Madrick correctly states, the… strong form of the EMH… proved pernicious…. Madrick’s wonderful chapter on efficient markets should be required reading for everyone in the financial world…