Back in graduate school circa early 1990s when I was taking Macro II taught by Tyler Cowen, I vividly remembered he once decribed the RBC (Real Business Cycle) view of what happened during the Great Depression in the 1920-30s as follows:
All workers decide to take a long vacation at the same time.
That is what I learn as part of the then State of the Art Macroeconomics. Seriously hope that those economic gurus who are at the helm power do not subscribe to that view.
If you were the President, imagine what your response would be if you senior staff told you, "you know what, my former professor told me that the current downturn has nothing to worry about, high unemployment only reflects workers have similar preferences with regarding to their leisure/labor choice." Amen!
No comments:
Post a Comment