"Words ought to be a little wild, for they are the assault of thoughts on the unthinking" - JMK
- Brad DeLong continues the discussion on Mises and gold, quoting me again. This one is quite good. He pointed out some Misesian contradictions before, but reconciled it with a cost of production theory of value. He never actually thought that's how Mises reconciled the contradiction - I think he simply thought Mises ignored it. But a lot of people (myself included) mistakenly figured Brad was saying Mises actually held a cost of production theory of value. This post is much better in that it identifies the contradiction and simply calls it a contradiction, without any hypothetical reconciliation. Hopefully some Austrians will take it up.
- And speaking of Brad DeLong on the history of economic thought, I had always figured he was exaggerating when he used to talk about Marx as a real business cycle theorist. I figured he must be cherry-picking or exaggerating. Nope - as usual Brad is dead-on. I've had my nose in Theories of Surplus Capital, Capital, and Grundrisse all weekend absorbing Marx on Say's Law, and that's pretty much his position. Granted - he starts with some very interesting discussion of the whole C-M-C' "metamorphsis of commodities" model that gets to sounding a lot like an explanation you'd hear out of Nick Rowe. But then he essentially says "this is all abstract - let's get more concrete" and makes a series of RBC arguments.
- A great old post by Arnold Kling on labor shortages.
- Heeding his warning, I am linking to this Nick Rowe post without comment... I do have a few thoughts, but now I'm nervous about sharing them. His footnote about "political economy" may be the most valuable point in the post for some readers.
- And Nick Rowe's post reminds me of a fortune cookie I got just this weekend: "The wise man learns more from the fool than the fool learns from the wise man". Probably right.
Turning a probability vector into a state
1 hour ago