Economics Theater

Go read this wonderful little Princess Bride satire, from econ blogger Macro Man.

Vizzini: But it’s so simple. All I have to do is divine from what I know of you: are you the sort of problem that will respond well to a tightening of domestic monetary policy that will not kill the consumer? Now, an endogenous inflation problem will respond to reduced demand and a slackening of labour markets, so I can clearly not choose the dovish policy in front of me. But only a great fool would think that US consumer demand is driving the price of oil. I am not a great fool, so I can clearly not choose the hawkish policy in front of you. But you must have known I was not a great fool, you would have counted on it, so I can clearly not choose the policy in front of me.

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