Sometime in the next 24 hours we will be switching European Tribune over to a new layout. This will involve a little downtime and no doubt some teething troubles. Do not adjust your set. - Colman

Krugman and other economists talk a lot about the importance of managing inflation expectations. Expectations of inflation would skyrocket and general panic would ensue.

That's because Krugman subscribes to a built-to-fail modeling architecture, which means that he has to sweep its repeated empirical failures under the rug. Expectations and preferences form a very convenient rug to sweep empirical failure under, because they are inherently unobservable.

Whenever an economist says either of those words, you can bet your bottom dollar that he's trying to surgically remove some inconvenient empirical falsifiability from his theories.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Jan 11th, 2013 at 04:04:20 AM EST
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