Reporter Peter Coy takes on the macreconomics profession in a BusinessWeek cover story titled “What Good Are Economists Anyway?” The story inside is titled, “Hey, Economics Geniuses, What Happened?”
Here’s an email I dashed off to Mr. Coy:
Peter — the Hayekian macroeconomists did explain and predict what what happening — as early as 2006 and 2005. Peter Schiff is perhaps the most famous of them. Some of us were even explaining and predicting what was happening as early as late 2004, Mark Thornton, U. of Auburn, and myself on my blog.
Taleb [who you quote] is something of a “Hayekian” — and cites Hayek in his speeches and in his book.
The best source on Hayekian macroeconomics is Roger Garrison’s web site: http://www.auburn.edu/~garriro/
Hayek explains what is wrong with mainstream macro modeling and “testing” in his Nobel lecture:
Peter, you have no excuse now for not knowing this stuff — or reporting it.