Lars P. Syll

Take me to church  [embedded content]

The road to hell  [embedded content]

Brad DeLong admits neoliberal era has come to an end Should Democrats lean away from market-friendly stances and get comfortable with big government again? Should they embrace an ambitious 2020 candidate like Sanders and policies like the Green New Deal, or stick with incrementalists like former Vice President Joe Biden and more market-oriented ideas like Obamacare? One of the most interesting takes I’ve seen on this debate came from Brad DeLong, an...

MMT and the need for taxing the rich Some inflation might be good, in particular if it allows for higher real wages, something sorely needed. How much inflation? Difficult to say, but the structure of the Fed is not going to vanish, and higher rates would be used to discipline the labor class, with the support of many neoliberal Dems … The limits to fiscal expansion would be political, not economic, and there is no reason for the left to be up in arms...

Stephanie Kelton explains MMT [embedded content] As has become abundantly clear during the last couple of weeks, it is obvious that most mainstream economists seem to think the ideas that Kelton explains so well here is something new that some wild heterodox economic cranks have come up with. That is actually very telling about the total lack of knowledge of their own discipline’s history these modern mainstream guys like Summers, Rogoff and Krugman have....

Modelling an uncertain world In a very personal discussion of uncertainty and the hopelessness of accurately modeling what will happen in the real world, Nobel laureate Kenneth Arrow – in “I Know a Hawk From a Handsaw,” in M. Szenberg, ed., Eminent Economists: Their Life Philosophies, Cambridge University Press (1992) – writes: It is my view that most individuals underestimate the uncertainty of the world. This is almost as true of economists and other...

Il n’y a pas de vérité économique  [embedded content]

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Wienmodellen — så löser vi bostadsbristen [embedded content] Yours truly har alltid gillat Wien sen han läste tyska där år 1980. Jag längtar med jämna mellanrum tillbaka (var där för några år sedan och föreläste vid stadens två stora universitet). Och det blir ju inte sämre när det nu visar sig att staden — till skillnad från t ex Stockholm — på allvar försöker göra något åt bostadseländet. (h/t Kjell Nilsson)

Econometric beasts of bias In an article posted earlier on this blog — What are the key assumptions of linear regression models? — yours truly tried to argue that since econometrics doesn’t content itself with only making ‘optimal’ predictions,” but also aspires to explain things in terms of causes and effects, econometricians need loads of assumptions — and that most important of these are additivity and linearity. Let me take the opportunity to elaborate...