Why the Standard Model Survives Bad Performance
By Steven D. Gjerstad, Vernon L. Smith
Many forecasters have relied on a model that has yielded overly optimistic predictions for the economys recovery from the Great Recession. The standard model has performed poorly because it is ill-suited for dealing with housing cycles, especially those that include speculation-driven housing purchases, unusual levels of mortgage credit, and large international capital flows.
|Other Independent Review articles by Vernon L. Smith|
|Summer 2020||Classical Economics:Lost and Found|
|Winter 2001/02||Demand-Side Bidding Will Reduce the Level and Volatility of Electricity Prices|