Research Economist at the Bank of England
Tyler Cowen writes, in the midst of a discussion of Keynes’s General Theory, spending multipliers and the velocity of money:
You can’t just take a partial derivative of an accounting identity and call the result a causal relationship.
[My previous posts on spending multipliers and the velocity of money.]
“There is nothing a government hates more than to be well-informed; for it makes the process of arriving at decisions much more complicated and difficult.”
— John Maynard Keynes, The Times (March 11, 1937); Collected Writings, vol. 21, p. 409
(via Bruce Bartlett (via Brad DeLong))
Ahhh … the sweet, soothing succour of cynicism. 🙂