Introducting Fake Business Cycle Theory

A blog about business and economics.
Sept. 28 2012 11:22 AM

Introducting Fake Business Cycle Theory

I highly recommend Brad Plumer's article on economists studying the economies that exist inside big multiplayer video games.

There's just one thing that I want to add to the mix, namely that I really want this field to be called "fake business cycle theory." It's endlessly annoying to me that in economist-ese the opposite of "nominal" is "real" as if nominal quantities are somehow fake. Fake economies are very much a thing. They're right there in Eve Online and Second Life and the Valve and whatnot. And they have business cycles. Fake ones.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.