Radio telescopes recently picked up this conversation, which seems to have come through a wormhole from a universe very much like our own:
What continues to amaze me is this: Japan’s current strategy of massive, unsustainable deficit spending in the hopes that this will somehow generate a self-sustained recovery is currently regarded as the orthodox, sensible thing to do – even though it can be justified only by exotic stories about multiple equilibria, the sort of thing you would imagine only a professor could believe. Meanwhile further steps on monetary policy – the sort of thing you would advocate if you believed in a more conventional, boring model, one in which the problem is simply a question of the savings-investment balance – are rejected as dangerously radical and unbecoming of a dignified economy.
Will somebody please explain this to me?
And then there was this reply:
Your mistake is to assume the monetary authorities will sabotage the fiscal stimulus, by failing to accommodate it with faster inflation. The fiscal stimulus will boost Japan’s inflation from 0% to 2%, and the BOJ will take over from there. What makes you think that the monetary policymakers will fail to sustain the faster growth in demand, once the fiscal stimulus has run its course?
And now I have an admission to make. The first message wasn’t actually from another universe, unless you consider Paul Krugman’s writings from 1999 to now be part of some alternative universe, produced by a quantum fluctuation in a Higgs energy field.
And the second passage is my pathetic attempt to imitate the views of my critics.
By the way, here’s Wikipedia on multiverses:
Tegmark argues that a level III multiverse does not contain more possibilities in the Hubble volume than a level I-II multiverse. In effect, all the different “worlds” created by “splits” in a level III multiverse with the same physical constants can be found in some Hubble volume in a level I multiverse. Tegmark writes that “The only difference between Level I and Level III is where your doppelgängers reside. In Level I they live elsewhere in good old three-dimensional space. In Level III they live on another quantum branch in infinite-dimensional Hilbert space.” Similarly, all level II bubble universes with different physical constants can in effect be found as “worlds” created by “splits” at the moment of spontaneous symmetry breaking in a level III multiverse.
I love how scientists can tell us that ”nothing matters at all” in such technical language (“another quantum branch of infinite-dimensional Hilbert spaces.”) Don’t ya just hate it when everything happens?
And people think my zero fiscal multiplier is far-fetched. Multiverse theory implies that in another universe there is still a neoliberal Paul Krugman out there bashing fiscal stimulus, and a lonely blogger from the “University of Bentleys” vainly trying to resurrect Keynesian theory during a long dark age of new classical dogma. Krugman fancies the Foundation Trilogy, but Asimov had nothing on our modern scientists. As the post-modernists like to say; who needs science fiction when all of science is just storytelling?
A Merry Christmas to my readers as they veer off onto their nice and cozy alternative quantum branches.
PS. I don’t plan on blogging for a few days.