And that is my case, too. The world is positioned for disappointment. But, in economic and financial matters, the world rarely gets what it expects. Pigou had humanity’s number. The “error of pessimism” is born the size of a full-grown man—the size of the average adult economist, for example.
—James Grant in the WSJ, the editor of Grant’s Interest Rate Observer
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1 February 2010 at 3:48 pm
animal spirits « Stilltitled
[…] Economists have a tendency to assume that everyone’s behavior is rational. But post-boom pessimism is a factor driving the economy, and it is likely to be associated with attitudes that may be […]
2 February 2010 at 5:04 pm
animal spirits & Machiavelli’s Mistake « Stilltitled
[…] Economists have a tendency to assume that everyone’s behavior is rational. But post-boom pessimism is a factor driving the economy, and it is likely to be associated with attitudes that may be […]