När Finanspolitiska rådet med den väne Lars Heikensten i spetsen riktade kritik mot att regeringen inte följt sitt eget ekonomiska regelverk, kunde inte Mikael Damberg hålla sig. Han gick rätt i fällan, bekräftandes bilden att pengarna är slut. Men fakta är att Sverige har en mycket låg statsskuld. Vi har stora investeringsbehov. Och nationen Sverige […]
economics
Perhaps the foremost financial crisis theorist of our time, Hyman Minsky, had as his central idea that crises are endogenous (system-internal) phenomena where stability creates instability and reduces safety margins for financial transactions with excessively high leverage effects. During the upswing phase of financial bubbles, safety margins shrink, and even the smallest setback can lead […]
Neoclassical economics is known for its illicit use of garbled language which hides and convolutes instead of explains … An interesting example is the chapter by Edward Prescott, titled ‘RBC Methodology and the Development of Aggregate Economic Theory’. Let’s first give the floor to him, mind that ‘leisure’ means ‘measured unemployment’: “What turned out to […]
~by Sean Paul Kelley Couple of random notes this Friday morning, mostly economics related, some silver news and my personal reaction to portions of the discusssion in Ian’s “Is Virtue An Advantage Or Disadvantage For Societies?” post. First, econonomics. It looks more and more like we are heading into a 2008-style credit crisis/crunch. Don’t believe […]
Things look very different from 198o onward. During this era, we see faster automation but only a few technologies counterbalancing the antilabor bias of automation. Wage growth also slowed down as the labor movement became increasingly impaired. In fact, lack of resistance from the labor movement was likely an important cause of the greater emphasis […]
Consider the example given by Martin Feldstein (1999) of a group of well-heeled economists gathered at a conference or subscribers to an economic journal. If each of us—the economists—were given $1,000, inequality (in the United States) would go up; each of us would be better off and no one would be worse off. So what […]
The link between income distribution and aggregate demand is central to post-Keynesian and heterodox economics, yet largely sidelined in mainstream policy debates. The logic is simple: lower-income households have a higher marginal propensity to consume than the wealthy. An extra euro in the hands of a poorer household is mostly spent; in the hands of […]
In my long post about silver prices, I talked about a reversion to the mean. This is something that frequently happens in life: something overshoots the norm and then it swings back and overshoots the abnormal. Slowly but surely it finally settles smack in the middle of the bell curve, to use a shit metaphor. […]
~by Sean Paul Kelley So, Marku asks: But aren’t most of those contracts never expecting to take physical delivery? Just gambling, er excuse me, investment hedging? Or is the problem that given that Comex price is under the real, that all those contracts *want* to be exercised in delivery so they can arbitrage to China […]