3 comments on “Timmy Elsewhere

  1. Tim – I must say that it is courageous of you to keep on banging on as if nothing has changed while your entire world view is collapsing around your (and our) ears.

    Owen

  2. Owen,

    is that comment related to this post or just a general observation?

    If it is related to this post, which links approvingly to a “what we have learned essay” by Daron Acemoglu, does that mean you also think Daron is acting as if nothing has changed? (i.e. that his “what we have learned” arguments do not go far enough?)

    Which elements of Tim’s world view (which I do not share – I am more to the left) have collapsed?

    1. that bubbles burst and financial crisis happen? Surely he already knew that
    2. principal-agent problems and asymmetrical information matter and can really screw up financial markets? Surely he already knew that too
    3. that appropriately regulated markets are generally the best path to prosperity for all? You may think Tim is weak on the regulatory/institutional and is too often against intervention (as do I) but the essay he links to approvingly is mostly about institutions, so either this a reversal for him (in which case he’s not banging on) or he was already sympathetic to institutional arguments, in which case no collapse of world view
    4. that the global financial system was a vulnerable as it was, that it could go wrong the way it did, and that bankers did things which were, with some qualification, stupid? Ah, well that was doubtless a surprise, but isn’t that more of an adjustment to the world view, rather than a collapse of it?

    I’m curious, because in some respects I’m not too far from Tim, in that I adhere to fairly mainstream economic thinking, and I don’t feel my world view has collapsed – I found a lot to agree with in that Acemoglu essay.

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