I was thinking that we could make a list
of the numerous theories that purported
to explain the rise and fall of economic
activity (and the rate of growth of
productivity) over the years. I thought
we could consider how they come and go
from time to time in how well they stack
up in retrospect. I think this exercise
will give us some inside into the
formation of economic theory.
Monetary theories, for example, have a
considerable degree of staying power.
Supply-side theory, in contrast, may be
gone for good unless W. brings a bunch
of loonies to Washington. Secular
stagnation reappears more recently in
terms of overcapacity. Do people still
believe in real business cycles?
The influx of minorities into the labor
pool was considered to be a major cause
of the decline in the rate of
productivity growth during the '70s.
Now that productivity seems to be
picking up, will economists give much
credit to the immigrants and minorities?
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail [EMAIL PROTECTED]
