Post-Keynesian

For quite a few months I have, on this blog, been alluding to a paper that I had written which showed that the natural rate of interest is implicitly dependent on the EMH in its strong-form in order to be coherent. I have finally published this paper (in working paper form) with the Levy Institute and it can be read here: Endogenous Money and the Natural Rate of Interest: The Reemergence of Liquidity Preference and Animal Spirits in the Post-Keynesian Theory of Capital Markets Some...

Economists say the darnedest things sometimes. They often say things that are factually inaccurate. Noah Smith put his foot in it recently when he claimed in a Bloomberg article: It seems like the only people who don’t instinctively believe in credit-fueled growth are academic economists. Now, this seems odd to me. In the article he notes that Post-Keynesians and Austrians do in fact think that credit fuels economic growth. Given that many of these economists hold academic positions...

In this post I will explore Keynes’ theory of the business cycle. He discusses his views in Chapter 22 of the General Theory and I think they hold up pretty well today. At the beginning of the chapter he notes that the business cycle — so-called, because it is not really a “cycle” at all despite what Keynes says in the chapter — is a highly complex phenomenon and that we can only really glean some very general features of it. Keynes opens with a very clear quote on what he thinks to...

At the moment I am doing some research for a project that I might be working on soon. The project will be to provide a useable introduction to Post-Keynesian theory for those working in financial markets. Actually, I hope to write a book on this in the future, so this project is something that I have been interested in for a long time. The more I studied Keynes’ own work and the work of some of his better interpreters the more I came to the same conclusion: Keynes was first and...

I have some writing to do today, so I’m not doing a post. Yesterday, however, I published a piece on Al Jazeera America about the future of Scotland after the election. It might be worth a read. Scotland’s future is still in doubt If you are interested in this issue — and I think that it is an extremely interesting issue as Scotland still has the potential to be a country ripe for economic experiment — I highly recommend the following piece by Frances Coppola. In it she plugs my dual...