Athens in Wonderland
Have a look at the following very odd statement from Laurence Kotlikoff in the Economists' Forum . He is suggesting that Greece does not need to devalue, because its prices and wages will quickly adjust regardless: In the US...the past two years has seen essentially zero inflation leaving prices today substantially lower than where they’d be today had there been no recession. This is hardly evidence of sticky prices. I find it difficult to interpret "zero inflation", and prices exactly where they were two years ago, as anything other than evidence for sticky prices. He then goes on to address the important question of sticky wages in exactly the same way: Nor is there strong evidence that wages don’t adjust to market pressures. In the US, median real wages have hardly moved for decades Huh? I haven't seen the new Alice in Wonderland film, but I have the feeling this must be what it's like. Syllogisms whose premises and conclusions point precisely in opposit...