Re: [Fwd: Exuberance Is Rational]

From: Brian Atkins (
Date: Wed Feb 14 2001 - 12:20:55 MST

I just think it's odd how even the most important economic decision makers
out there (people like Greenspan) don't seem to take into account these
kinds of behavioristic effects. For instance, after he helped cause the
tech stock bubble to deflate, he is suddenly surprised that the country
starts to head into a recession. I mean it is obvious to anyone living in
the real world that when you cause the stock market to come down as far
as he did that you are going to see a large cutback in GDP. I believe the
economic cycles could be smoothed out even more if the FED took into
account these kinds of effects.

"Eliezer S. Yudkowsky" wrote:
> > In the ordered world of economics, this rated as a heresy on the
> > scale of Galileo.
> It's all complete orthodoxy to me. Framing effects, loss aversion,
> Kahneman and Tversky, non-normative decision making... I never learned it
> any other way.
> If there was an academic revolution here, it's clearly over.
> -- -- -- -- --
> Eliezer S. Yudkowsky
> Research Fellow, Singularity Institute for Artificial Intelligence

Brian Atkins
Director, Singularity Institute for Artificial Intelligence

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