Lars P. Syll

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DSGE models — unparalleled and spectacular failures 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. To me the most damning critiques that can be levelled against DSGE models are the following two: DSGE models are unable to explain involuntary unemployment In the basic DSGE models the labour market is always cleared –...

Krugman’s misapplication of neoclassical growth models The fallacies loanable funds theory commits might be explainable by the misapplication​ of some ideas and concepts of neoclassical growth models … to the sphere of money and finance … The Ramsey and Solow models are models of real investment only. Financial markets, financial assets and financial saving do not play any role in those models. There is only one good which, for simplicity, will be called...

Pseudo-vetenskapligt mumbo jumbo på svenska universitet Jag sprang nyligen på en sammanställning av genusdoktorsavhandlingar från 2014. Många godbitar. Men en av dem var särskilt anmärkningsvärd, nämligen nummer 19 i uppräkningen. Det handlar om doktors-avhandlingen “Rum, rytm och resande” från Linköpings universitet (pdf). Sammanställningen sammanfattar: “Avhandlingen undersöker järnvägstationer som fysiska platser och sociala rum ur könsperspektiv....

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The causes of secular stagnation and the loanable funds theory What are the causes of secular stagnation? What are the solutions to revive growth and get the U.S. economy out of the doldrums? … One headline conclusion stands out: the secular stagnation is caused by a heavy overdose of savings … All these savings end up as deposits, or ‘loanable funds’ (LF), in commercial banks … The glut in savings supply is so large that banks cannot get rid of all the...

A Happy New Year to all my blog readers Tired of the idea of an infallible mainstream neoclassical economics and its perpetuation of spoon-fed orthodoxy, yours truly launched this blog six years ago. The number of visitors has increased steadily, and with now having had my posts viewed more than 3 million times, I have to admit of still being — given the rather wonkish character of the blog, with posts mostly on economic theory, statistics, econometrics,...

KR: The death of the centre-left has also led to the rise of the Right. You note … that working class white women overwhelmingly voted for Trump, while Clinton lost votes among African Americans and Latinos compared to Obama’s election in 2008. How have so many social groups associated with the Left – the working class, minorities, women – turned away? Wolfgang Streeck: That’s a difficult question as the “racial” complexities of American politics in particular are endless....