Saturday, October 4, 2008
The simplifying beauty of a supply and demand curve
Krugman did it. The relevant graphs are on slides seven and eight. If Krugman would pull those out, simplify them some, explain them a little bit, then replace the relatively arcane "financial multiplier" with GDP points, a lot fewer people would start out their posts with "I don't know anything about this stuff, but...." I also suspect the number of people who believe this is a manufactured crisis would go down by quite a bit as well. Somehow seeing something in graphic form sinks in for some people in a way that reading it or seeing it in tabular format does not.