Real-World Economics Review

from C. P. Chandrasekhar and Jayati Ghosh We are nearing the tenth anniversary of the collapse of Lehman Brothers in the United States that sparked a Global Financial Crisis,affecting every economy in significant ways. That crisis generated extraordinary monetary policy responses in the advanced economies, with low interest rates and unprecedented expansion of liquidity, in an effort largely driven by central banks to keep their economies afloat. By contrast, expansionary fiscal policy...

from Lars Syll How come that econometrics and statistical regression analyses still have not taken us very far in discovering, understanding, or explaining causation in socio-economic contexts? That is the question yours truly has tried to answer in an article published in the latest issue of World Economic Association Commentaries: The processes that generate socio-economic data in the real world cannot just be assumed to always be adequately captured by a probability measure. And, so,...

from Dean Baker The media have treated us to an array of stories warning us of the terrible labor shortage facing the country. Some of the pieces have been general, such as this CNBC piece on the labor shortage “reaching a critical point,” or this Wall Street Journal article on wage gains “threatening profits.” Others have been more industry-specific, such as The Washington Post’s highlighting of the trucker shortage that threatens the “prosperous economy.” Then there is this New York...

from Lars Syll The distinctions between hard and soft sciences are part of our culture … But the important distinction is really not between the hard and the soft sciences. Rather, it is between the hard and the easy sciences. Easy-to-do science is what those in physics, chemistry, geology, and some other fields do. Hard-to-do science is what the social scientists do and, in particular, it is what we educational researchers do. In my estimation, we have the hardest-to-do science of them...

IG: DEANRAVENBAKER Music / Artist / Vocals: Dean Raven Baker Song: Give Me the Power "Creation of sound through the evocation of the true self". - Dean Baker. This original song was first recorded around the year 2010 on my laptop and sat in the vault for almost 8 years along with a dozen other albums worth of content after the group disbanded. After long contemplation I've decided to pull it out, add some visuals (big thanks to Pixabay & Videvo for the video clips) and share it with...

from Merijn Knibbe I’m trying to write a book about the relation (not) of neoclassical macro-economic concepts to the concepts of macro-economic statistics. Which leads one to interesting places one can’t explore. If there is anybody out there in search for an interesting idea for a master thesis or something light that, these might do: A qualitative and quantitative exploration of ‘hoboism’ in the 1930’s looking at it using the lens of ‘involuntary part time unemployment’ An...

from Asad Zaman Introduction — I wrote this essay a while ago, and I am adding this preface here to explain more about WHY I wrote it: Preface: A central problem of our age is the turning of “means” into “ends”.  It is obvious that money, by itself, is not a source of pleasure –  it is a means to this end. Similarly, freedom is useful only if it is freedom to allow us to do something we want to do. Nobody would want the freedom to sell himself into slavery — which is effectively the only...

from Lars Syll Axiomatic decision theory was pioneered in the early 20th century by Ramsey (1926) and de Finetti (1931,1937), and achieved remarkable success in shaping economic theory … A remarkable amount of economic research is now centered around axiomatic models of decision … What have these axiomatizations done for us lately? What have we gained from them? Are they leading to advances in economic analysis, or are they perhaps attracting some of the best minds in the field to deal...

A lot of my students do internships or write theses based upon problems of companies or NGO’s. Many teachers want them to play the research game. I prefer them to design something for the company or organisation as I really want them to learn that they don’t have to learn what their teacher wants them to learn…. or wait…. Anyway: what did I learn? Some of the companies involved were: Agradi (Den Bosch). Cavallo (Bad Oeynhausen), Anicura (Amstelveen, John Maynard Keynes road…), PAVO...

from Lars Syll Whereas the Great Depression of the 1930s produced Keynesian economics, and the stagflation of the 1970s produced Milton Friedman’s monetarism, the Great Recession has produced no similar intellectual shift. This is deeply depressing to young students of economics, who hoped for a suitably challenging response from the profession. Why has there been none? Krugman’s answer is typically ingenious: the old macroeconomics was, as the saying goes, “good enough for government...