Saturday, October 10, 2020

One of these quotes is economics. The other is gossip.

Samuelson and Solow:

... just by the time that cost-push was becoming discredited as a theory of inflation, we ran into the rather puzzling phenomenon of the 1955-58 upward creep of prices, which seemed to take place in the last part of the period despite growing overcapacity, slack labor markets, slow real growth, and no apparent great buoyancy in overall demand.

Romer and Romer:

"If monetary policymakers in the 1950's had figured out the essence of sensible policy, the mistakes of the 1960's and 1970's cannot just have been the result of continuing ineptitude or misunderstanding. Rather, something must have changed."

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