Will Macro-Economists Ever Learn?

WILL MACRO-ECONOMISTS EVER LEARN?

As we lurch through successive credit crises, central bankers and economists believe they learn valuable lessons every time, and that the ultimate prize, the suppression of business cycles through monetary policy, will be achieved.

The most fundamental is of approach. Classical economists agreed that demand is subordinate to supply. In other words, the time-line of goods and services acquired by the individual is that his demand for them must be successfully anticipated before being produced and supplied. The reasoning is unarguable.

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