Monday, 10 December 2012
I argued here a couple of years ago that Ricardian equivalence is nonsense.
So it’s good to see Lars Syll making the same point. I particularly like one of his quotes (from Joseph Stiglitz): “Ricardian equivalence is taught in every graduate school in the country. It is also sheer nonsense.”
P.S. (2nd Oct, 2013): “rational expectations” is wrongheaded because it attributes too much knowledge and forecasting ability to people…” - Art Rolnick.