Saturday, October 04, 2008

Some Nobel laureates are just unbelievable lately

Stiglitz got an F. And McFadden, oh my goodness.

HT: Cafe Hayek and EconLog


Arya Gaduh said...

Have to admit, I suck at macro. But I don't see why Stiglitz was wrong. Isn't Boudreaux second explanation -- ie., the Saudis could just buy GE equities and therefore not increase indebtedness -- implies a net asset transfer, which can be interpreted as an increase in indebtedness?

Aco said...

Arya, I think Boudreaux's point is more on Stiglitz's assertion that trade deficit forces American to borrow more. He said it in his response to comments.