Re: Re: Re: AS/AD

[Brad De Long <delong@xxxxxxxxxxxxxxxxx>]

> Jim,
>      But usually this Say's Law argument is dragged
> in for the long run analysis.  But, the new wave led
> by the execrable Mankiw (with even Colander now
> tagging along, bah) is to place this huge emphasis
> on long run growth.  I imagine that Brad D. approves
> of this, given his ten billion year perspective on econ
> growth (and I'm not out to pick a fight with him on this),
> but I see this as what has led to all kinds of problems
> in the current texts.
> Barkley

No. I think that even from a neoclassical point of view the right
place to start is with sticky prices and the Keynesian Cross... Move
on to IS (and LM should die, because no central bank fixes the money
stock)... Move on to the Phillips curve and stabilization policy, and
end up with potential output and long-run growth.

I think that the current order is inverted: it makes the hardest
parts of the syllabus come first, and it makes it very hard to see
how the short run links up with the long run...

Brad DeLong