Fight of the Century: Keynes vs. Hayek Round Two

This blast of a video is the sequel of their initial offering of "Fear the Boom & Bust", and it's a worthy sequel indeed. Of course, it lacks the shock of the original (two of the greatest economists as rappers), but still, when you think of what they're saying, you realize a lot of knowledge and perspective is packed into this video. Russ Roberts of EconTalk, a terrific podcast, is one of the writers and producers, and if you've listened to him as much as I have, you appreciate his ability to address complex concerns on these topics in very approachable ways. You do note that the Hayekians have a bit of a chip on their shoulder, their man's Nobel Prize notwithstanding, but I suppose that's accurate. I've only come appreciate Hayek more of late. I thought (without reading, shame on me) that The Road to Serfdom was some right-wing rant. Unfair. In fact, I like the ending of this video because both of these great economists (who, by the way, wrote in prose primarily and not math) have very important and worthwhile things to say. For me, in a crisis, go Keynesian, but for day-to-day, Hayek's perspective on the disbursement of knowledge and decentralized decision-making is crucial. Cheers to both these fine rappers!

Easterly on Growth, Poverty & Aid

Nerd Alert!

Another podcast that I enjoy is Russ Roberts's EconTalk, which comes out weekly, and has done so since at least 2007. Roberts takes about 1 hour to discuss a topic of interest with economists, political scientists, and others with similar interests about topics in economics and public affairs. The discussion led by Roberts is always interesting, and even when Roberts disagrees with the perspective or contention offered by his guest, he doesn't get on a high horse or simply toot his own horn. He lets his guest talk. Roberts is a part of the blog-crazy economics department at George Mason University, which, I must say, as a group, probably does more to promote and stimulate thinking about economics and public affairs than any other group that I know. For instance, Tyler Cowan and Alex Tarrock's Marginal Revolution comes out of GMU.

Now the podcast: William Easterly of NYU is a major critic of the traditional development aid regime that includes the IMF, the World Bank, Jeffrey Sachs, Bono, and so on. Easterly worked at the World Bank, so he's seen things from the inside. His main contention: aid hasn't worked for several reasons. These reasons include a lack of feedback (market mechanism) to measure success and need; lack of standards, institutions and culture for economic development in the recipient countries; bureaucratic imperatives of the providers that trump the needs of recipients; and corruption among governments receiving or administering aid. Easterly doesn't want to cut billions loose just to fend for themselves or starve. He does recognize gains. He believes, however, that small scale, direct giving (to projects and not necessarily governments) works best.

It's a thought-provoking discussion, and I know that his books have attracted a lot of interest because they attack the reigning paradigm (of which Jeff Sachs is seen as the current intellectual champion). Having read Sachs, this provides another important perspective. The problems are real, and how we address them can prove a matter of life and death, not to mention poverty, disease, and limited life for millions around the world.