economics
The completeness of the Ricardian victory is something of a curiosity and a mystery. It must have been due to a complex of suitabilities in the doctrine to the environment into which it was projected. That it reached conclusions quite different from what the ordinary uninstructed person would expect, added, I suppose, to its intellectual […]
The mainstream textbook concept of money multiplier assumes that banks automatically expand the credit money supply to a multiple of their aggregate reserves. If the required currency-deposit reserve ratio is 5%, the money supply should be about twenty times larger than the aggregate reserves of banks. In this way, the money multiplier concept assumes that […]
Bernard Lietaer (1942-2019) was a former professor of international finance and president at the Central Bank of Belgium. One of our greatest monetary thinkers, and contrary to Krugman et consortes, he dared to talk about — and question — our monetary system!
Apokalypsens fyra ryttare är här – för att dra ned brallorna på de neoklassiska ekonomerna. I det tysta pågår en revolution inom det ekonomiska fältet, och längst fram på barrikaderna står en grupp kvinnliga forskare. Det kan vara svårt att känna hopp när både höstens och den reaktionära samtidens mörker lägger sig över oss. Därför […]
. Dieses Interview ist wirklich hörenswert. Yours truly schätze Dirk Ehnts’ eher pragmatische Haltung gegenüber MMT und der Frage des Umgangs mit Staatsschulden. Er warnt davor, die MMT-Theorie als eine Art Allheilmittel zu betrachten. Er betont die Notwendigkeit, die Anwendung der MMT-Prinzipien an die spezifischen Gegebenheiten eines Landes anzupassen. Zudem weist er darauf hin, dass […]
Almost sixty years ago Milton Friedman wrote an (in)famous article arguing that (1) the natural rate of unemployment was independent of monetary policy and that (2) trying to keep the unemployment rate below the natural rate would only give rise to higher and higher inflation. The hypothesis has always been controversial, and much theoretical and […]
.Macroeconomic models may be an informative tool for research. But if practitioners of ‘New Keynesian’ macroeconomics do not investigate and make an effort to provide a justification for the credibility of the assumptions on which they erect their building, it will not fulfil its tasks. There is a gap between its aspirations and its accomplishments, […]
. The recurring pattern in financial crises is more or less the same. For some reason, a shift occurs in the economic cycle (such as war, innovations, new regulations, etc.) that leads to changes in the profit opportunities for banks and companies. Demand and prices rise, pulling more and more parts of the economy into […]
Prima facie modular systems seem very special. But a number of authors suppose that modularity is the hallmark of causality … I have two objections to the usual claims about modularity. First, it is not a hallmark of causality. Recall the Phillips curve, a canonical example of a non-modular causal connection – one that, à […]