View Single Post
Old 04 June 2014, 09:07 PM
Johnny Slick's Avatar
Johnny Slick Johnny Slick is offline
Join Date: 13 February 2003
Location: Phoenix, AZ
Posts: 11,628

Originally Posted by Steve View Post
Not really. Even your site says :But again, I'm puzzled who these economists are arguing that there aren't recessions. ETA: Are you talking about something like rational expectations or real business cycle theory?
I'm not an economist but I believe they come from the rational expectations idea, that essentially there can't be recessions because the market would see that coming and correct for it in advance. Any economic downturns or ramp-ups are the result of something beyond the scope of economics, at least according to the model.

I wish I could provide names... I know there was a (decidedly freshwater) economist on Planet Money with this opinion last fall (he might even have been a U of Chicago guy, I don't remember).
Reply With Quote