One item I've always tried to stress to my students is that economics is a product of its times. The theories that are developed are meant to explain and address problems, and as such may or may not have on-going application.
Bryan Caplan at Econ Log cites an interesting anecdote from another source regarding the efforts of U.S. economists to manage the post-World War II economy in Germany, and Hermann Goering's advice to them.
The message? Maybe the U.S. economists were trying to apply the "new", dominant Keynesian theory. Your thoughts?
The cited link is also interesting.
Posted by TSchilling at 3:05 PM | Comments (0)