Within the early twentieth century, Irving Fisher was arguably the best economist on the planet. However right this moment he’s finest identified for asserting within the New York Occasions that shares had reached “a brand new and completely excessive plateau” simply two weeks earlier than the good Wall Avenue crash of 1929.
One other nice early twentieth century economist who did not anticipate the crash was John Maynard Keynes. Each Fisher and Keynes misplaced some huge cash within the crash, however they responded to that failure in fully alternative ways.
Tim Harford explains what tenet of financial forecasting allowed John Maynard Keynes to get better from the crash of ’29, whereas Irving Fisher’s life has develop into a tragic cautionary story.