Can't the WSJ Get a Real (and Good) Economist to Write Op-Eds?
Wait a second. I thought that supply-side theory was bunk, the stuff of quacks, charlatanic, completely discredited by mainstream economics. Then what on earth is a Nobel laureate economist doing claiming that "supply-side reduction in marginal tax rates" are one of only two "macroeconomic policy changes...that have really mattered." This is insanity. Let's get some real economists in here who can set this Lucas guy straight. How about some other Nobelists. Yeah, bring in the big guns. Mundell, Prescott, Vernon Smith, Buchanan, and Becker. Maybe they can confirm that the economics profession considers supply-side theory pure hogwash and a big con job.
posted by Donny Baseball at 1:29 PM
1 Comments:
The big problem that supply-side economics has is a lack of consensus on monetary policy. How should monetary policy be conducted in the frame work of supply-side economics, what would be the right target, etc? Everyone has their own pet ideas, but they don't agree with each other on an operational level. It's a mess. As a result, sometimes it makes supply-side economics look bad. I had high hopes for something from Mundell, but he seems to be out of favor in the US; too bad.
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