Monday, August 22, 2005

Smarter Economists Please

Max has a bit of fun with everyone's favorite freakeconomist regarding peak oil. This kind of stuff I don't really get. A bit of half-assed econ-101 level graphic analysis combined with a wee bit of common sense (adjustment to equilibrium is not instantaneous, once you hit capacity temporary local supply disruptions are to be expected, price shocks can be tremendous and, well, shocking at least over a not very short short run, etc... )can get you a long way to understanding what the issues. In fact, I think I did something along those lines, which is roughly right, here.