Friday, September 14, 2012

In the last two hours I have become a Real Business Cycle Theorist

This whole mess is a supply-side, productivity shock.

What has convinced me? Twitter.

Apparently they went from 400,000 tweets a quarter in 2007 to 100 million in 2008. Coincidence? I think not.

My apologies to Kydland and Prescott for how long it took me to come to this realization.


  1. Replies
    1. Awww it's not funny if I have to explain it!

      RBC says downturns are just productivity shocks. I have recently jumped into Twitter. I have been surprised at what a negative productivity shock it provides. I am struck by the correlation of its growth with the onset of the crisis. I am thus convinced of RBC.

      It's all a bit tongue in cheek, of course.

    2. I thought you were joking, and I'm glad that you were!

    3. JCE - I suspect that you are not a native English speaker. The expression "Coincidence? I think not." gives away that the writer is implying a causal connection they know is almost certainly false.

  2. hahahahah ok, i see. that *is* funny. i agree completeley, it definately kills productivity

    1. Waddaya mean? The production of tweets increased by 25,000%! That's one helluva productivity increase.

    2. The Great Stagnation hypothesis is looking better.


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