Macroeconomics

Why the conventional tools of the Phillips Curve, NAIRU, potential output, and money-supply growth are useless

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1. Introduction

The word “unemployment” has a precise technical meaning, with origins in the industrial economy of post-Civil War Massachusetts (Card 2011); to be unemployed is to be seeking paid work but unable to find it at the prevailing wage. The concept was developed for administrative purposes at particular stages of capitalist development; it has legal and social-welfare implications, and the word is not applicable in other settings, such as peasant-agrarian or informal economies.

Phil Armstrong   ‘It’s the same each time with progress, First, they ignore you, Then they say you’re mad, Then Dangerous, And then there’s a pause, And then you can’t …

The post ‘Tombstone for a Tombstone’: Dealing with the ‘bad science’ behind mainstream criticism of MMT appeared first on The Gower Initiative for Modern Money Studies.

Martina Fazio and Gary Harper During recessions, and indeed pandemics, housing prices usually fall. Yet between March 2020 and December 2021 (‘the pandemic’), housing prices grew in the UK, reaching at the time their highest growth rate in a decade. During this pandemic, many more people could work from home, which potentially influenced their housing … Continue reading Location, location, location? How UK housing preferences shifted during the pandemic →

A new book from Edward Elgar Publishing in association with GIMMS. The Gower Initiative for Modern Money Studies is pleased to announce that its book “Modern Monetary Theory: Key Insights, …

The post Modern Monetary Theory: Key Insights, Leading Thinkers appeared first on The Gower Initiative for Modern Money Studies.

Gerardo Martinez In 1936, John Maynard Keynes coined the famous term ‘Animal Spirits’ to illustrate how people take decisions based on urges, overlooking the benefits and drawbacks of their actions. To what extent are prices of Environmental, Social and Governance (ESG) assets driven by the sentiment of market participants, as opposed to economic fundamentals? To … Continue reading Animal spirits and environmental, social and governance asset prices: does market sentiment drive stock returns? →

Kristina Bluwstein, Sudipto Karmakar and David Aikman Introduction Inflation reached almost 9% in July 2022, its highest reading since the early 1990s. A large proportion of the working age population will never have experienced such price increases, or the prospect of higher interest rates to bring inflation back under control. In recent years, many commentators … Continue reading What does the rise in the inflation mean for financial stability? →