#507: would you scrap your plans.

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i'm not sure i'd be willing to just exnay everything i've been working on for the past 2 years. but then again, and given the major economic turbulence around us lately, saving $10,000 sounds mighty tempting.

PARIS - on the street, belleville & le marais, 01/27/09

Krugman on Equilibrium Macro

Paul Krugman disses a large class of macroeconomists:

Economists who have spent their entire careers on equilibrium business cycle theory are now discovering, in effect, that they invested their savings with Bernie Madoff.

It is funny. I have a similar pedigree as Paul. Both of us have PhDs from MIT, and we learned a lot of our macro there. Both of us see the world through the lens of the Keynesian framework (by which I mean the IS-LM model, etc.) But we have very different perspectives on the equilibrium business cycle theorists.

The difference may reflect our research paths. Most of Paul's research has been in international economics, and throughout his career, he could easily ignore equilibrium business cycle theory. By contrast, I have done a lot of work on "new Keynesian economics," which tries to fix the flaws in the Keynesian model that the equilibrium business cycle theorists pointed out. Perhaps that work has given me more appreciation for their contribution, as well as for the defects in the Keynesian worldview. When I teach graduate-level macro, no one shows up on my reading list more often than Robert Lucas, the father of equilibrium macro.

In my view, the intellectual framework created by Lucas and Ed Prescott needs to be taken seriously by students of modern macro. I think they both richly deserved the Nobel Prize. And I hope they did not invest any of their winnings with Bernie Madoff.

chinese new year: happiness doubled sampler

{ xin niang "bride" necklace by dorisworks }

a bit late, as the chinese new year was monday -- here's to the year of the ox.






{each photo links to its shop}

#506: Ruth 1:16

Entreat me not to leave you, or to return from following after you, For where you go I will go, and where you stay I will stay. Your people will be my people, and your God will be my God. And where you die, I will die and there I will be buried. May the Lord do with me and more if anything but death parts you from me.

via miss cheese.

Amusing, Perhaps Pointless

The Bailout Game

from today's etsy finds: rings + seababejewelry

{ hand-forged white gold and rough diamond ring by seababejewelry }

friends, this may be a cheater post, but with all the valentine's promotion on etsy they sent out an 'etsy finds' email with fun ring ideas today.

my favorite new find: seababejewelry, who deserve their own post! kristin and david make gorgeous things on the north shore of oahu -- i love the organic look of rough diamonds and other wire-wrapped gemstones in place of something perfectly machine-faceted and prong-set. not to mention living in hawaii and making jewelry sounds like a pretty good gig.

check out some of their other work below, and see the storque for more etsy ring finds this week!





more at seababejewelry.etsy.com