Sunday, January 07, 2007

The Akerlof-Friedman Team

Steve Levitt points out that economists George Akerlof and Milton Friedman are cut from the same cloth:
Both Akerlof and Friedman want to explain real world phenomena and their work aims squarely at doing so. Many economists, in contrast, care little about real-world questions. In this important regard, I see Akerlof and Friedman as being on the same team rather than opposing teams.
But Levitt avoids the most intriguing question that his comment raises: Why hasn't Akerlof-Friedman team vanquished the opposition?