TW: There is a war emerging between conservative and liberal economists. The conservatives usually adherents of Milton Friedman are petrified that they will lose their pre-emiment position gained since the rise of Reaganism as the economy tanks. The liberals usually adherents of Keynes are gearing up for 2009 and the Obama Administration as they seek to provide their suggestions to address the economic quagmire.
Greg Mankiw is a conservative economist, biased certainly but level-headed and not merely a shill for the Republicans like a Kudlow; who has worked for Reagan and Bush but his response to an aspiring economics student was useful. Neither side has all of the answers.
From Mankiw's blog:
"[question from student] What advice would you give to a college undergrad being exposed to so many different ideologies at the same time? I can go from being told by my ECON 301 (Intermediate Micro) professor that we should, for example, let the banks fail and let the market do it's work, and I can see his point. I can then go talk to my ECON 302 (Intermediate Macro) professor and he will say that it's ludicrous to not do SOMETHING regarding the financial crisis, and I can also see his point."
[Mankiw answer]
"1. The current economic environment is a particularly hard time to learn economics. There are a lot of topics about which economists agree, but the diagnosis and best remedy for the current economic downturn are not among them. It is therefore no surprise that your econ profs express disparate views about the appropriate policy in the current environment. Don't read too much into this fact. I bet there are many other topics about which these economists would come to similar conclusions. Ask them about rent control, or international trade, or Pigovian taxes, for instance, if you want to find broad areas of agreement.
2. You are lucky that you have professors with different viewpoints. Your job, as a budding economist, is to learn from all of them. Ideally, at the end of the day, you should be able to understand and appreciate (although not necessarily agree with) each point of view. You should try to construct in your mind a debate between your Friedmanite professor and your Keynesian professor. What points would each raise, and how would the other respond?
3. As you come to grips with these various points of view, you will be in a better position to judge which you find most cogent. But don't expect to reach unequivocal positions easily. In my view, it is best to consider all knowledge as tentative. The best scholars maintain an open-mindedness and humility about even their own core beliefs. Excessive conviction is often a sign of insufficient thought, which in turn may be derived from a certain pig-headedness. Intellectual maturity comes when you can maintain the right balance between informed belief and honest skepticism. You sound like you are on the right path."
http://gregmankiw.blogspot.com/2008/12/question-about-learning-economics.html
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