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The Assumptions Economists Make

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The germ of this book was planted more than two decades ago in my efforts to explain economic theory to myself. But why write a book, for myself or anyone else, trying to explain economic theory rather than proposing a concrete solution to one of the world’s many urgent problems, such as how to alleviate income inequality or do something about global warming? Because I had grown tired of listening to heated arguments that always seemed to disagree for reasons I could never quite identify. Economics textbooks usually suggested doing nothing. For example, take the 2006 edition of the well-regarded graduate text Advanced Macroeconomics, by the relatively liberal economist David Romer. Of course,...
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