"Let
me be absolutely clear that I am not saying that macroeconomics has
nothing to learn from the financial crisis. What I am saying is that
when those lessons have been learnt, the basics of the macroeconomics we
teach will still be there."

- Simon Wren-Lewis

## Wednesday, July 11, 2012

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I agree with your quote of the day. However...

ReplyDeleteDid you have any comment on Simon Wren-Lewis's post on orthodox economics and heterodox economics? If you haven't seen it, here it is.

http://mainlymacro.blogspot.co.uk/2012/07/heterodox-and-mainstream-macroeconomics.html

Unlearningecon made a response to it.

http://unlearningeconomics.wordpress.com/2012/07/09/the-fundamental-difference-between-mainstream-and-heterodox-economics/

And in my opinion, Dr. Michael Emmett Brady makes an important point regarding the mathematical competency of heterodox economics. More often than not, they tend to be opposed to the role of mathematics, and tend to be poor mathematicians - or to put it bluntly as Dr. Brady has, "mathematically illiterate". Then again, most mainstream economists' mathematical competency isn't as good as any professional mathematicians.

Keynes, Mandelbrot, and Taleb were right regarding the use of mathematics - it can be a powerful tool when the assumptions are "properly defined, carefully applied, and empirically checked".

http://www.amazon.com/review/R28X2ZGDBP7EFV