The game is based on the horrendous and fatally flawed Phillips Curve that posits a inverse relationship between employment and inflation (i.e., a tight labor market means high inflation and high inflation can tighten the labor market - that is the Fed can inject money into the economy to spur job growth).
The Curve was dead in the 1970s and through the 1990s:
I was under the impression that Austrian economics was mostly considered fringe, much like (human-caused) climate change deniers. I have no formal training in economics other than a "101" class in univ, just wondering what your background is and if you could fill me in more on it. Thanks!
Austrian can be considered a branch of classical economics. Calling it entirely fringe is gross over-generalization. Like I don't agree on their view on monetary policy, but I would never label the entire branch as fringe. They have some areas they depart, but they also have some areas where they agree with literally hundreds of years of political economics, including contemporaries. The world doesn't revolve around Keynesians.
I went to UC Berkeley and went though almost an entire minor in econ but now work in financial technology and developing trading systems and strategies, everything from statistical arbitrage to macro- and micro-economic news events to options.
I buy the story on the Phillips curve (not only attacks by the Austrials, but pretty much everybody except Keynsians) because the data against it is just really good. When I was in school I bought into the theory, but since then I've been convinced pretty heavily that the correlation only exists because of policy actions and the causation definitely doesn't exist. I used to have some correspondence with a former Reagan adviser (a Democrat) that was really quite persuasive.
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[ 2.6 ms ] story [ 28.0 ms ] threadThe Curve was dead in the 1970s and through the 1990s:
https://mises.org/library/phillips-curve
And still dead:
http://www.economonitor.com/dolanecon/2014/05/12/what-ever-h...
I just wish it would die completely.
I went to UC Berkeley and went though almost an entire minor in econ but now work in financial technology and developing trading systems and strategies, everything from statistical arbitrage to macro- and micro-economic news events to options.
I buy the story on the Phillips curve (not only attacks by the Austrials, but pretty much everybody except Keynsians) because the data against it is just really good. When I was in school I bought into the theory, but since then I've been convinced pretty heavily that the correlation only exists because of policy actions and the causation definitely doesn't exist. I used to have some correspondence with a former Reagan adviser (a Democrat) that was really quite persuasive.