Narayana Kocherlakota: Some Thoughts on Modern Macro

Advertisements

One thought on “Narayana Kocherlakota: Some Thoughts on Modern Macro

  1. dr2chase

    "Friction", or "delay"? Those are different things, especially in control systems ("the invisible hand"). One results in damping, the other results (sometimes) in oscillation.And I see bounded rationality, but not bounded information. When working with large sums of money I am as rational as I know how to be, but my problem is that my information is not just randomly noisy, it is often bounded in a Byzantine way (is it really an AAA bond? Would Moody’s lie to me?).I worry also that when I must rely upon other people’s behavior to infer a large fraction of my information, that it begins to construct what is essentially a dependent utility function — which, as I understand it, is a bad thing, for the mathematics of microeconomics.

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s