2014-04-14

Oh, Boy...

Scott Sumner writes:
It is assumed that total labor compensation is a stable fraction of NGDP. Arnold Kling found this assumption so reasonable that he once called the model an "identity."
I guess it's admirable that Sumner is phrased that in a way that makes Kling's criticism of Sumner sound like an agreement. Or perhaps he's joking.

[UPDATE] - Meh, I'm probably being too hard on everyone here. All I really mean to say is: Is this a clever jibe on Sumner's part, or what? I'm not on the inside of all this stuff, so I can't really say. And I continue to be a NGDPLT skeptic, but hey that's just me.