So in what sense is this “dynamic stochastic general equilibrium” model firmly grounded in the principles of economic theory? I do not want to be misunderstood. Friends have reminded me that much of the effort of “modern macro” goes into the incorporation of important deviations from the Panglossian assumptions that underlie the simplistic application of […]
economics
Many people would argue that, in this case, the inefficiency was primarily in the credit markets, not the stock market—that there was a credit bubble that inflated and ultimately burst. Eugene Fama: I don’t even know what that means. People who get credit have to get it from somewhere. Does a credit bubble mean that […]
Scottish-born economist – Angus Deaton – recently published his new book – An Immigrant Economist Explores the Land of Inequality – in which he provides a swathing critique of the state of the economics profession, particularly in the way that it impacts on policy making and societal well-being. He is a microeconomist who made a…
Jamie Morgan: To a member of the public it must seem weird that it is possible to state, as you do, such fundamental criticism of an entire field of study. The perplexing issue from a third party point of view is how do we reconcile good intention (or at least legitimate sense of self as […]
It’s Wednesday and while there is a lot to write about, I am prioritising the release today of our latest research at the Centre of Full Employment and Equity (CofFEE). The release of what we are calling the – CofFEE Financial Resilience Barometer – Version 1.0 – is part of a research collaboration I have…
‘Growth is one of the stupidest purposes ever invented by any culture. We’ve got to have an ‘enough’. Always ask growth of what, and why, and for whom, and who …
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Finding the Money follows economist Stephanie Kelton on an exploration of Modern Monetary Theory. Also appearing in the movie are Pavlina R. Tcherneva, L. Randall Wray, Mathew Forstater and Fadhel Kaboub. Soon coming to a theatre near you!
I have tried to document how the practitioners of the self-proclaimed ‘science of monetary policy’ have gone out of their way to salvage their paradigm—after the inflationary surge of 2021-2023 made it clear that the New Keynesian emperor was not wearing any clothes. All their elaborate tools and instruments, including the output gap, the unemployment […]
Det som är fel med mainstream nationalekonomi är inte att den använder modeller i sig, utan att den använder dåliga modeller. De är dåliga eftersom de inte bygger broar till de verkliga system där vi lever. Förhoppningsvis kommer det ensidiga, nästan religiösa, insisterandet på matematisk deduktiv modellering som den enda vetenskapliga aktiviteten värd att förfölja […]