Thanks you, as always, Dr Rutledge for sharing your insights. Your work is always a great read and a helpful reminder to revisit Hayek and Fisher next.
Thanks for reminding me to write about Irving Fisher, Chandler. I will do that next to remind people of his legacy impact. Interesting subplots.
1. He was the most famous student of Josiah Gibbs, America's greatest thermodynamicist. His first teaching position was not economics, but mathematics.
2. He helped us understand the role inflation expectations play in determining interest Raes. We now call it the Fisher relation that the nominal rate = real rate + expected inflation over the term of the loan.
3. He also gave us the mathematics to understand inter-temporal substitution, the concept that has been deployed and misused by macroeconomists bent on finding "micro-foundations"trying to squeeze the interest rate into a macro model--the Euler Equation. I am convinced this has little to do with actual macro behavior.
4. Fisher wrote the best guide to so-called behavioral economics in print in his "The Debt Deflation Theory of Great Depressions." WE have much to learn from it today.
Well I'm certainly looking forward to reading your piece on Irving Fisher. "The Debt Deflation Theory of Great Depressions" is one of my favorite papers of all time.
Thanks again for sharing the insights, Dr. Rutledge!
Great insights! Thanks for all the links too, especially the syllabus. I'll get through it. Camus's 'Plague' was great reading during the pandemic. Really appreciate it Dr. Rutledge.
Thank you Valentin, and agreed. Russia/Ukraine and China/Taiwan and their echoes through the markets will remain the headline risks. But I also believe that one of the principal manifestations of the fear that follows plagues is the conflict it produces between and among tribes, especially nationalistic wars.
Great great messages I received. I share your valuable thoughts with my colleagues. Thank you sensei!! from yogi
Thanks you, as always, Dr Rutledge for sharing your insights. Your work is always a great read and a helpful reminder to revisit Hayek and Fisher next.
Thanks for reminding me to write about Irving Fisher, Chandler. I will do that next to remind people of his legacy impact. Interesting subplots.
1. He was the most famous student of Josiah Gibbs, America's greatest thermodynamicist. His first teaching position was not economics, but mathematics.
2. He helped us understand the role inflation expectations play in determining interest Raes. We now call it the Fisher relation that the nominal rate = real rate + expected inflation over the term of the loan.
3. He also gave us the mathematics to understand inter-temporal substitution, the concept that has been deployed and misused by macroeconomists bent on finding "micro-foundations"trying to squeeze the interest rate into a macro model--the Euler Equation. I am convinced this has little to do with actual macro behavior.
4. Fisher wrote the best guide to so-called behavioral economics in print in his "The Debt Deflation Theory of Great Depressions." WE have much to learn from it today.
More on all this to come.
John
Well I'm certainly looking forward to reading your piece on Irving Fisher. "The Debt Deflation Theory of Great Depressions" is one of my favorite papers of all time.
Thanks again for sharing the insights, Dr. Rutledge!
Great insights! Thanks for all the links too, especially the syllabus. I'll get through it. Camus's 'Plague' was great reading during the pandemic. Really appreciate it Dr. Rutledge.
You are welcome Robert. And thank you for reading my work.
Thank you Valentin, and agreed. Russia/Ukraine and China/Taiwan and their echoes through the markets will remain the headline risks. But I also believe that one of the principal manifestations of the fear that follows plagues is the conflict it produces between and among tribes, especially nationalistic wars.
John