Thursday, January 13, 2011

Ronald Coase on good and bad economics

This post contains no argument or data or big insight. File it under "Hey! Somebody famous said something I like the sound of!"

RC: The bad or wrong economics is what I called the "blackboard economics". It does not study the real world economy. Instead, its efforts are on an imaginary world that exists only in the mind of economists, for example, the zero-transaction cost world.
Ideas and imaginations are terribly important in economic research or any pursuit of science. But the subject of study has to be real.

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