A gem from Robert Solow:
"Everything reminds Milton Friedman of the money supply.
Everything reminds me of sex, but I try to keep it out of my papers."
I never thought reading the Economist cld lead to such interesting moments.
Whoever said tt economists are a dull bunch?
Simultaneously, I find myself agreeing with Myron Scholes:
“There are models, and there are those who use the models,” says Myron Scholes.
Uh huh. Blind faith in models is foolish.
Mr Scholes, however, insists that the efficient-market paradigm is not dead:
“To say something has failed you have to have something to replace it, and so
far we don’t have a new paradigm to replace efficient markets.” The trouble
with behavioural economics, he adds, is that “it really hasn’t shown in aggregate
how it affects prices.”
Erm no? You dun have to know how much force gravity exerts on you
to know tt it exists, proof being when you jump off a 10-storey building, you fall and die.
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