In a word, Economics is an Impossible Science because by its own definition the determining conditions of the economy are not economic: they are “exogenous.” Supposedly a science of things, it is by definition without substance, being rather a mode of behavior: the application of scarce means to alternative ends so as to achieve the […]
economics
Recognition of the speculative value of counterfactualizing provides the grounding for a defense of theoretical pluralism in economics. The existence of multiple contending theories in economics is inconvenient, of course. It casts doubt on the truth content of the counterfactual scenarios generated by the predominant approach and challenges the predominant causal claims … But that […]
In practice, what math does is let macro-economists locate the FWUTVs [facts with unknown truth values] farther away from the discussion of identification … Relying on a micro-foundation lets an author say, “Assume A, assume B, … blah blah blah … And so we have proven that P is true. Then the model is identified.” […]
Il capitalismo è un sistema economico affermatosi negli ultimi due secoli e mezzo in questa parte del mondo. Un sistema che per consolidarsi ha plasmato la società e la politica, creando un ordine sociale. Il ruolo principale dell’economia teorica dominante (mainstream) è stato quello di fornire un’apologia di un ordinamento sociale spacciato per naturale, ma […]
Economists too often deceive themselves and their audiences into believing they know more than it is possible to know. As keepers of this Secret Knowledge, economists are rewarded in compensation, prestige, and influence for their expertise. At a 1991 speech at a World Bank-International Monetary Fund meeting, the famed Larry Summers told an audience, “The […]
The unsellability of DSGE models — private-sector firms do not pay lots of money to use DSGE models — is one strong argument against DSGE. But it is not the most damning critique of it. The most damning critiques that can be levelled against DSGE models are the following two: (1) DSGE models are unable to […]
While one can understand that some of the elements in DSGE models seem to appeal to Keynesians at first sight, after closer examination, these models are in fundamental contradiction to Post-Keynesian and even traditional Keynesian thinking. The DSGE model is a model in which output is determined in the labour market as in New Classical […]
. In case you know some Python you could try this little code snippet and this is the plot you get:
I veckans avsnitt av Starta Pressarna diskuterar yours truly tillsammans med Max Jerneck och Daniel Suhonen varför John Maynard Keynes räknas som 1900-talets kanske främste nationalekonom och hur vi kan vi använda hans idéer för att finna lösningar på dagens samhällsekonomiska problem.