Economics for Parrots..

Came across this old column (written in Sep-10) by Brad Delong.

Found the opening lines really amusing:

It is said that the early nineteenth-century British economist J.R. McCulloch originated the old joke that the only training a parrot needs to be a passable political economist is one phrase: “supply and demand, supply and demand.”

Then in typical Delong style he points how econs are doing a worse job than McCulloch parrots. This was the time when few econs claimed that rise in unemp was structural and needed a structural solution. However, Delong (and Krugman) always argued it was cyclical and basically because demand had slipped sharply post the recession. It was mainly because of supply and demand, supply and demand…:-)

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