Friedman's Overcleverness

Paul Diesing lists six tactics Professor Milton Friedman used to support a pet hypothesis called "Permanent Income" (PI).

Category:

News & Politics

Tags:

• Milton
• Friedman
• Paul
• Diesing
• Monetary
• Theory

[gizmo2084]

Dogs and vlogs do no mix.

[radiohogan]

Please elaborate.

[surnbe]

Keynes was wrong, all his theory are mercantilism or, more precisely, John Lawism pure and simple. Thus they do not recognize that the objections of the classical economists to mercantilism are valid also in respect to their own teachings. Nor do they see that many concepts of the modern planners — fair prices, fair wages, fair profits, and so on — are nothing else than a new edition of justum pretium and justum salarium, which proved so detrimental to economic progress.

[radiohogan]

Keynes had nothing to do with Mercantilism.

[surnbe]

I am saying that he is making the same argument

[radiohogan]

I disagree. You are no familiar with Keynes ideas, apparently.

[zsylvana]

1)Friedman's scientific position is that the realism of assumptions is irrelevant if you want to know whether a theory is "good". It is only the approximate conformity of its implications with observation that counts. Moreover, Friedman claims, if you want such conformity, quite often you will be successful using unrealistic assumptions. Assumptions should be abstract, that is, only depict the main features of the process modelled, ignoring less relevant details.

[zsylvana]

The most notable critic of Friedmans Methodology was P.A. Samuelson, who claimed no meaningful distinction between "theory", "assumptions", and "implications" can be made, and these terms al refer to exactly the same thing, the model used.

[gizmo2084]

Just messing. Your dog was barking. :)

[Scoforever]

He's an investor.

[radiohogan]

Where does Peter Schiff teach - West Virginia University?

[IWLocal8]

Great book!