Ep. 252 Bob’s Reaction to the Bernanke/Diamond-Dybvig Nobel Award
Bob Murphy Show
00:00
What's the Simplest Model?
It took till 1983 for someone to write something that simple up into a formal model, yes, it did. So they had to make it so that they could have a bank run in the model. The idea is what's the simplest model we can come up with that exhibits some of the stylized facts of the real world phenomenon? You actually want the thing to be as simple as possible.
Transcript
Play full episode
