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51 sats \ 3 replies \ @SimpleStacker 23 Jul \ on: Do Technology Shocks Cause Boom-Bust Cycles? econ

Mmmm... I obviously don't buy that recessions are caused by negative technology shocks, but it's reasonable to think that a technology shock can trigger a boom, and a recession follows from overinvestment

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72 sats \ 2 replies \ @Undisciplined OP 23 Jul

It wasn't that the idea was utterly implausible but the technical theory was silly.

My recollection is that the thing they called a technology shock wasn't (it was just a residual) and the thing they called a recession wasn't (it was just a deviation from the long term growth trend).

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59 sats \ 1 reply \ @SimpleStacker 23 Jul

labeling the unexplained part and calling it a theory is a time tested academic tradition, like dark matter in physics

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5 sats \ 0 replies \ @Undisciplined OP 23 Jul

I'm well aware. I work with people who devote a lot of time to studying and publishing about a particular residual, seemingly without realizing that's what they're doing.

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