All :
I am reading/learning Austrian economics, and at the same time arguing with a friend who is pretty steadfast Democrat and thus favors continuous government intervention in the economy. I sent him links to the Murphy/Krugman exchanges, and we are discussing this. My request to this forum is to review a statement I want to make to him, but I'm not sure if I have it correct. Here is what I'd like to tell him:
"Austrians claim that the Keynesian models that use economics aggregates to create mathematical models to predict economic behaviour cannot do so, because they don't account for the sophistication of the productive structure, which, because of the variables in each individual case, cannot be quantified on a general scale."
Does this seem correct? Any suggested corrections or edits?
I am in a difficult position, as I am trying to argue points with my buddy even as I am trying to develope my own understanding of them, and he has no interest in actually reading the Austrian books that would clear this all up for him.
My buddy, by the way, is a Phd engineer, took standard micro and macro-economics as an undergrad at Lehigh (years ago - we're not kids anymore), and is very widely read.
Thanks for any help offered....
markb
...am trying to argue points with my buddy even as I am trying to develope my own understanding of them...
The cart and the horse running neck and neck?
My humble blog
It's easy to refute an argument if you first misrepresent it. William Keizer
Why are you trying to argue for a theory you have not studied yet? Are you trying to use Austrian economics to bolster your already held beliefs?
You claim Keynesian models " don't account for the sophistication of the productive structure." What do you mean by this? I think you mean that Keynesian models aren't based on microfoundations, which isn't entirely true (at least nowadays).
Sadly, that is the case with many who claim that they want to "learn" Austrian economics. What they really want is to merely reinforce what they already believe.
Friedmanite:Sadly, that is the case with many who claim that they want to "learn" Austrian economics. What they really want is to merely reinforce what they already believe.
It's the case with many more who don't care to bother to learn anything.