Thinking is hard work, which may be why so few people do it. Good thinking is done in simple language and never uses jargon to make a point. In fact, the purpose of jargon is to stop people from questioning the basic assumptions that underlie an analysis. Economists are experts at doing that. Here are a few of my favorite terms of textbook jargon that I delete whenever I find them:
Multiplier
Accelerator
NAIRU
Natural Rate
Alpha
Optimal Portfolio
Buy the Dip
“Modern” Anything (Modern Macro, Modern Portfolio Theory, Modern Monetary Theory)
I will write about these and others as we go along. What are some of your favorites?
Steady State.