[PEN-L:29898] Re: Bushies say NAIRU is 4.9

["Devine, James" <jdevine@xxxxxxx>]

Title: Re: Bushies say NAIRU is 4.9

Saying that a phenomenon is "natural" is a much less scientific way of
describing something than doing so in simple descriptive terms (which
are more coherent or systematic). The term "natural" implies "you can't
mess with Mother Nature" and stuff like that -- or that somehow Adam
Smith's "natural liberty" exists. Economists use the word "natural" in
an mystical way, as part of the Holy Cult of the Invisible Hand.
JD

-----Original Message-----
From: Tom Walker
To: pen-l@xxxxxxxxxxxxxxxxxxx
Sent: 8/26/2002 4:59 PM
Subject: [PEN-L:29889] Re: Bushies say NAIRU is 4.9

I'll admit as much as "more coherent" or "more systematic" but "more
scientific?" That's like saying one astrologer is more scientific than
another.

Jim Devine wrote,

"The NAIRU is a more-scientific way to describe what Milton Friedman
calls
"the natural rate of unemployment." His idea is that the economy
gravitates
toward the natural rate unless the government or central bank screws
things
up.

Tom Walker
604 254 0470