by Summary:
Rather than attempt to explain what the mainly neoclassical economists are going on about, I want to step back and try to translate their debate into terms that would be understood by people who do not share the same assumptions. I am pretty sure that post-Keynesian economists have a lot to say about the topic as well, but once again, they tend to be discussing wonkish points that would elude an outsider.…I have an engineering background, and engineering is largely the science of trade-offs. I have no strong objections to qualitative discussions, but I would argue that we need to at least know the sign of the exchange ratio between two variables in order to say that there is a trade-off between them. Very simply, if we can have a policy that lowers both the unemployment rate and the
Topics:
Mike Norman considers the following as important: assumptions, conventional economics, economic modeling, fiscal policy, inflation rate, Monetary Policy, NAIRU, Phillips Curve, tradeoffs, unemployment rate
This could be interesting, too:
Rather than attempt to explain what the mainly neoclassical economists are going on about, I want to step back and try to translate their debate into terms that would be understood by people who do not share the same assumptions. I am pretty sure that post-Keynesian economists have a lot to say about the topic as well, but once again, they tend to be discussing wonkish points that would elude an outsider.…I have an engineering background, and engineering is largely the science of trade-offs. I have no strong objections to qualitative discussions, but I would argue that we need to at least know the sign of the exchange ratio between two variables in order to say that there is a trade-off between them. Very simply, if we can have a policy that lowers both the unemployment rate and the
Topics:
Mike Norman considers the following as important: assumptions, conventional economics, economic modeling, fiscal policy, inflation rate, Monetary Policy, NAIRU, Phillips Curve, tradeoffs, unemployment rate
This could be interesting, too:
Robert Waldmann writes What are we To Do With the Phillips Curve ?
NewDealdemocrat writes Immigration and the housing market freeze are making the “last mile” of disinflation harder, not the Phillips Curve
Matias Vernengo writes Atonella Stirarti’s Godley-Tobin Lecture
Matias Vernengo writes Beyond the NAIRU, 7th Godley-Tobin Lecture by Antonella Stirati
Rather than attempt to explain what the mainly neoclassical economists are going on about, I want to step back and try to translate their debate into terms that would be understood by people who do not share the same assumptions. I am pretty sure that post-Keynesian economists have a lot to say about the topic as well, but once again, they tend to be discussing wonkish points that would elude an outsider.…
I have an engineering background, and engineering is largely the science of trade-offs. I have no strong objections to qualitative discussions, but I would argue that we need to at least know the sign of the exchange ratio between two variables in order to say that there is a trade-off between them.
Very simply, if we can have a policy that lowers both the unemployment rate and the inflation rate (or at least leaves inflation unchanged), we cannot pretend there is a meaningful "trade-off" between them.
And this is hardly theoretical: in the United States, we saw a near monotonic decrease in the unemployment rate after the Financial Crisis, yet the inflation rate has done absolutely nothing interesting....Bond Economics
Is There Really A Trade-Off Between Inflation And Unemployment?
Brian Romanchuk