The woods are full of benighted economists in power. Here’s another one: Adam Posen. He is a thoroughly credentialed member of the elite Establishment (Harvard, Council on Foreign Relations, Trilateral Commission, etc.) At the same conference as Kohn, he asked “Why has all this [sic] lower short-term interest rates failed to make the economy go go go?” He has the same mistaken and oversimplified model in his head, which is that investment and output are simple functions of interest rates. This is not the case. His ignorance didn’t stop him from calling for more inflation: “He argued that policymakers in … Continue reading The Woods Are Full of Them