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So an austrian goes for a FED job interview...

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Vitor posted on Wed, Sep 9 2009 12:10 PM

It sounds like the start of promising joke, but it really happened and hilarity ensued nonetheless. Im a member of a Pearl Jam forum where there is this another guy who is an economist and actually studied in Auburn, he is the one who introduced me to mises.org. So let me quote him....

 

i should tell the story about my job interview with the fed here in kansas city. they asked me about optimal monetary policy, and hilarity quickly ensued.

so they started off asking basic technocratic economic questions..."what should the fed do when inflation is increasing?", "why do bond prices and their yields move in opposite directions?", "what happens when the fed increases the reserve requirement?", etc.  i prefaced every answer with the words "the textbook says..."  so when inflation is increasing, i said "the textbook says you raise rates."  they noticed, and at the end of the interview they asked why i prefaced every answer with "the textbook says..."  i said, "because i don't always agree with the textbook, particularly when it comes to the actions of the federal reserve."  i then turned the tables and put them on the defensive.  a nutshell:

me: what are your feelings on price and wage controls?

them: we're against them.

me: do you disagree that interest rates are prices, that they communicate information about the real state of the economy, the capital structure, and producer/consumer sentiments?

them: it's more complicated than that...

me: if you don't have another interview scheduled after mine, i don't mind waiting and listening to your explanation.  how exactly can the fed manipulate interest rates and not expect consequences not unlike those that result from controlling other prices and wages (ie...minimum wage, rent control, etc)?

them: the nature of money is very different than is the nature of other goods and services.  blah, blah, blah...

me: fair enough, but that doesn't distract from the fact that distorting the price of money, as communicated by interest rates, has effects on the real economy.  if it didn't there would be no need for the fed in the first place.  if the fed's actions had no real effect, it would be a redundant institution, no?

them: .............................

me: i'll show myself out.  thanks.

 

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Conza88 replied on Thu, Sep 10 2009 10:20 AM

Vitor:
It sounds like the start of promising joke, but it really happened and hilarity ensued nonetheless. Im a member of a Pearl Jam forum where there is this another guy who is an economist and actually studied in Auburn, he is the one who introduced me to mises.org. So let me quote him....

Any chance I could see the source? Just interested. Smile

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Vitor replied on Thu, Sep 10 2009 11:11 AM

Conza88:

Vitor:
It sounds like the start of promising joke, but it really happened and hilarity ensued nonetheless. Im a member of a Pearl Jam forum where there is this another guy who is an economist and actually studied in Auburn, he is the one who introduced me to mises.org. So let me quote him....

Any chance I could see the source? Just interested. Smile

Of course. Roll to the middle of the page. 

http://www.theskyiscrape.com/phpBB3/viewtopic.php?f=7&t=75250&st=0&sk=t&sd=a&start=4840

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Conza88 replied on Thu, Sep 10 2009 11:31 AM

Vitor:

Of course. Roll to the middle of the page. 

http://www.theskyiscrape.com/phpBB3/viewtopic.php?f=7&t=75250&st=0&sk=t&sd=a&start=4840

Haha, the continue on doesn't disappoint.. thanks. Big Smile

 

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So, your friend goes into the interview for a job from which he could have greatly benefitted (after all Mises, Menger and Boehm Bawerk all worked for the government) and makes himself look like an arrogant fool. Somehow, this is a "victory" for all self proclaimed Austrian "economists". I suppose there are some things I just don't get.

"You don't need a weatherman to know which way the wind blows"

Bob Dylan

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GilesStratton:

So, your friend goes into the interview for a job from which he could have greatly benefitted (after all Mises, Menger and Boehm Bawerk all worked for the government) and makes himself look like an arrogant fool. Somehow, this is a "victory" for all self proclaimed Austrian "economists". I suppose there are some things I just don't get.

I honestly don't know how those mentioned could stand their jobs.  Not every individual has an interest in working for the government & attempting influence from within, even if it might prove advantageous, nor does every individual have the sort of patience this would require. 

I'd say it was a minor moral victory, though.

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Because, it's educational besides all other things. I mean, Gordon Tullock worked in the public sector, and whilst I've not heard him mention this (although, his coauthor Jim Buchanan alluded to it) I'm sure he'd admit that his work in the public sector gave him insights into what later became his pioneering work in rent seeking.

"You don't need a weatherman to know which way the wind blows"

Bob Dylan

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Vitor replied on Thu, Sep 10 2009 7:04 PM

Giles, he knew he would not get the job, so he enjoyed what he could. And he already has plenty of experiencie with another branch of the state, which i shall not say respecting his privacy.

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liberty student:

Natalie:
That's why the austrians will never take over the world.

That's not the Austrian goal.

 

What is the goal?

 

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yoshimura:
What is the goal?

Advancing the scholarship of liberty.

If you find something evil that wobbles, push it. - Gary North

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Maybe some jobs just aren't for everyone. I mean, working in a brothel is educational... besides all other things.

Laissez faire et laissez passer, le monde va de lui même

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So, he got the job, right?

 

Stick out tongue

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