It seems to have become the purpose of this blog for me to defend ideas that I don’t particularly believe in. First, I had to defend claims about the stimulus package despite my opposition to it. Now, I must defend real business cycles.
First, our friend Arnold Kling offers an alternative to what he refers to as “hydraulic macro”:
I wish to reject this whole concept of macroeconomics. Instead, I want to get economists to think about unemployment in terms of the economic calculation problem.
[…]
I think that in the last 18 months, an unusually high number of people have had their plans go awry. They wish they had made different choices in terms of their education and occupations. Digging out from these mistakes is going to take a long time. A lot of recalculation needs to get done, and the problem is really daunting.
I don’t think that…
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Utopia, you are standing in it! 
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