Lawrence Klein: Economics

Lawrence Klein was American economist. Explore interesting quotes on economics.

Lawrence Klein: 30 quotes0 likes

“The centrally planned economics used to consider themselves well insulated against the economic ills of the rest of the world. This is no longer the case.”

"Some Economic Scenarios for the 1980's," 1980

“The centrally planned economies, dissatisfied with the outcome of their own efforts to achieve good economic growth performance, have changed strategy and decided to import high technology from the West. as well as necessary grains to supplement their domestic agicultural supplies. This new approach has opened their economies to Western inflation because imports have been reflecting rising world price. Gold and oil sales at correspondingly rising prices have been used by the Soviet Union to finance part of their import needs. but they are fully enmeshed in world inflation accounting in balancing rising export prices.”

"Some Economic Scenarios for the 1980's," 1980

“I have always believed that people have misjudged the accuracy of economic forecasting… During the 1980s and 1990s, I researched and applied methods of high frequency economic forecasting, to be used by themselves, and for objective establishment of initial conditions for longer range forecasts from structural dynamic models that carry forward the pioneering contributions of Jan Tinbergen.”

“It is my firm belief that the only satisfactory test of economics is the ability to predict, and in crucial predictive situations such as reconversion after World War II, the settlement of the Korean War, the settlement of the Vietnam War, the abrupt economic policy switch of the Nixon Administration in August 1972, the oil shock of 1973 (forecast of a world-wide succession by LINK), the recession of 1990. In these crucial periods, econometric models outperformed other approaches, yet there is considerable room for improvement, and that is precisely what is being examined in development of high-frequency models that aim to forecast the economy, every week, every fortnight, or every month, depending on the degree of fineness of the information flow.”

“In the past few years there has grown up a large group of young economists who have accepted the theoretical doctrines of the Keynesian Revolution and who have come into national prominence through their support of an economic policy of full employment.”

The Keynesian Revolution. Vol. 19. New York: Macmillan, 1947/66. p. 156.

“From Keynes' point of view the economic system, before the war failed in its solution of the unemployment problem”

The Keynesian Revolution. Vol. 19. New York: Macmillan, 1947/66. p. 166