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Comments on: Best article on the Treasury website? http://www.tvhe.co.nz/2012/07/12/best-article-on-the-treasury-website/ The Visible Hand in Economics Thu, 12 Jul 2012 07:00:08 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: peterquixote http://www.tvhe.co.nz/2012/07/12/best-article-on-the-treasury-website/#comment-38892 Thu, 12 Jul 2012 07:00:08 +0000 http://www.tvhe.co.nz/?p=7194#comment-38892 now read this Matt, you will print two editions of everything, from now on, and marked clearly.
Edition one.    for people who can understand difficult words
Edition two   for rednecks and people who do not do academic jargon
Understand Matt, it is difficult enough to read Eric, but you are out of the ball park, and its not fair, 

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By: jamesz http://www.tvhe.co.nz/2012/07/12/best-article-on-the-treasury-website/#comment-38876 Thu, 12 Jul 2012 02:13:31 +0000 http://www.tvhe.co.nz/?p=7194#comment-38876 In reply to Eric Crampton.

Just my lucky day, I guess 🙂

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By: Eric Crampton http://www.tvhe.co.nz/2012/07/12/best-article-on-the-treasury-website/#comment-38874 Thu, 12 Jul 2012 00:26:07 +0000 http://www.tvhe.co.nz/?p=7194#comment-38874 Wow. How did you find this?!

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By: Matt Nolan http://www.tvhe.co.nz/2012/07/12/best-article-on-the-treasury-website/#comment-38873 Thu, 12 Jul 2012 00:25:13 +0000 http://www.tvhe.co.nz/?p=7194#comment-38873 That article is superb – it gets better the further you get in.  The conclusion is beautiful:

The logical difference between association and causation is well-known in the social
sciences, but even today some cannot distinguish between the two. It is confusion of the two concepts that has led to the specific forms of the Melanesian cargo cult rituals. An
observed association of the arrival of cargo with the prior ritual of donning a headset and
speaking into a microphone was seen by local indigenous groups as connoting a causal
chain.

Their mistake (according to external observers) is that they did not understand
the fundamentals determining the production of the cargo, and they lacked “the practical
knowledge and technical means to achieve their ends” in the absence of the ritual.

Believing in a causal relationship between the observed outcome of the Aotearoans
spending more than they produce (accompanied by a high level of The Real Exchange
Rate) and the Arbee’s prior OC Ritual represents a similar confusion. The Imbalance is
seen to be a result of ritual embodying strong magic. But the OC Ritual is only associated
with The Imbalance, it is not its cause. Nor is the ritual responsible for the divergence of
Aotearoan living standards relative to those of the West Island.

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