Once the true relationship between inflation and unemployment is understood, with luck and skill, a free lunch is possible.
Paul OrmerodThe second part of the New Right's policy package has been the belief that free-market solutions are always best. It is this latter view which is profoundly mistaken. Markets and profits are crucial, but the pure free-market model itself is deeply flawed.
Paul OrmerodDespite the high salaries involved, employing economists is a cost-effective way for banks, and stockbrokers to secure exposure in the media.
Paul OrmerodBaseball players or cricketers do not need to be able to solve explicitly the non-linear differential equations which govern the flight of the ball. They just catch it.
Paul OrmerodKeynes tried to show that market economies could settle in equilibrium states in which the labour market did not clear, and in which the level of unemployment was high. He believed that this was due to a particular example of market failure, developed in his concept of effective demand.
Paul Ormerod