Milton Friedman's Cherished Theory - The permanent income hypothesis - Is Laid to Rest Noah Smith

But as economists get better and better data, they’re finding that even modification isn’t enough. 

A new study by Peter Ganong and Pascal Noel shows that consumer behavior is more short term than almost any mainstream model predicts.

Even the greatest scientists can be wrong. The measure of a science is how quickly it comes to grips with the mistakes its heroes make.

Noah Smith, Bloomberg 12 January 2017

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