When did Robert E. Hall coin the terms freshwater and saltwater for American macroeconomists?
Robert E. Hall coined the terms freshwater and saltwater in 1976 to describe two groups of American macroeconomists.
Robert E. Hall coined the terms freshwater and saltwater in 1976 to describe two groups of American macroeconomists.
The freshwater economics group includes scholars at the University of Chicago, Carnegie Mellon University, Cornell University, Northwestern University, the University of Minnesota, the University of Wisconsin-Madison, and the University of Rochester.
Saltwater Keynesian economists argue that business cycles represent market failures needing counteraction through discretionary changes in aggregate public spending and short-term nominal interest rates.
Freshwater economists prioritized internal model consistency above all else because they believed economic models must account for how large groups interact within market systems using consistent individual choices.
By 2006, Greg Mankiw wrote that the saltwater-freshwater dichotomy no longer held true as modern macroeconomics integrated elements from both traditions into unified frameworks.