{"id":168,"date":"2012-04-24T16:36:00","date_gmt":"2012-04-24T16:36:00","guid":{"rendered":"http:\/\/t8el.com\/?p=168"},"modified":"2012-04-24T16:36:00","modified_gmt":"2012-04-24T16:36:00","slug":"robert-solows-wit","status":"publish","type":"post","link":"https:\/\/t8el.com\/?p=168","title":{"rendered":"Robert Solow&#8217;s wit"},"content":{"rendered":"<blockquote>\n<p>&#8220;The truth is, I fear, that the [economic] profession&#8217;s disdain for the fix-wage assumption is much less respectable in origin. We have a sort of prior disposition to\u00a0think that prices equate supply and demand. To say that a price does not do\u00a0so under ordinary circumstances is seen as too crude, like eating peas with a knife. The accepted putdown is that the assumption of wage-rigidity is <em>ad\u00a0hoc<\/em>. Perhaps it is, but if the <em>hoc<\/em> it is <em>ad<\/em> is the economy we live in, then there \u00a0must be worse sins. In \u00a0that kind of world, the assumption of flexible\u00a0market-clearing does not even have the merit of being <em>ad hoc<\/em>. If the\u00a0function of macroeconomic theory is to train our intuitions, [John Hicks&#8217;] path \u00a0seems like the right one. It will certainly not do for the intuition to react like\u00a0a society dowager: if that is the sort of economy we have, let us not invite it\u00a0to tea.&#8221; (pp. 17-18)<\/p>\n<\/blockquote>\n<p>Solow, R. (1984), &#8220;Mr Hicks and The Classics&#8221;,\u00a0<em>Oxford Economic Papers<\/em>, Vol. 36., Supplement, pp. 13-25.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;The truth is, I fear, that the [economic] profession&#8217;s disdain for the fix-wage assumption is much less respectable in origin. We have a sort of prior disposition to\u00a0think that prices equate supply and demand. To say that a price does not do\u00a0so under ordinary circumstances is seen as too crude, like eating peas with a &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/t8el.com\/?p=168\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Robert Solow&#8217;s wit&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2,60,52],"_links":{"self":[{"href":"https:\/\/t8el.com\/index.php?rest_route=\/wp\/v2\/posts\/168"}],"collection":[{"href":"https:\/\/t8el.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/t8el.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/t8el.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/t8el.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=168"}],"version-history":[{"count":1,"href":"https:\/\/t8el.com\/index.php?rest_route=\/wp\/v2\/posts\/168\/revisions"}],"predecessor-version":[{"id":169,"href":"https:\/\/t8el.com\/index.php?rest_route=\/wp\/v2\/posts\/168\/revisions\/169"}],"wp:attachment":[{"href":"https:\/\/t8el.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/t8el.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/t8el.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}