Tuesday, September 30, 2008

How To Understand Macroeconomics

Everything really depends on microeconomics, where most of us understand the rules.
We know we shouldn't steal from others, and we certainly don't want others to steal from us. We know we wouldn't be happy with coercion, fraud, or people who just refused to abide by contract. We are all on some kind of budget.
On the Macroeconomic level, there are patterns, there are a lot of interesting things going on, these things are the order arising out of the 'chaos' of all sorts of individual choices. To think you can change something on the macro level and actually get the effect you want, well that would be akin to thinking you can do something like throw a bouy in the ocean and have some sort of predictable effect on all those water molecules.

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