James Hamilton on Mandel’s Saving Question

We provided a short answer to the Tyler Cowen test involving the Michael Mandel question on the importance of savings. James Hamilton takes our answer to the next level.

Update: Michael Mandel accuses James Hamilton of being a “capital fundamentalist” who fails to understand the importance of investing in R&D and human capital. I’m afraid Mandel is making up new meaningless concepts to suggest other economists are missing important determinants of growth. As I suggested in the comment section, I’m sure Dr. Hamilton knows more than Mandel gives him credit for.