Tag Archives: Economic Theory

Young people are turning to socialism, and Democratic Party politicians are adopting the term. But what is socialism? My own summary answer is that socialism is the socio-economic system that favors people and the environment as a whole over other factors and and political theory that prioritizes human rights.  This is in contrast to capitalism, which favors capital over other factors and accords highest priority to property rights. Doug Greene presents his view of a Marxist-Leninist...

My friend and colleague Paul Craig Roberts had this to say: For Economic Truth Turn To Michael Hudson Paul Craig Roberts Readers ask me how they can learn economics, what books to read, what university economics departments to trust. I receive so many requests that it is impossible to reply individually. Here is my answer. There is only one way to learn economics, and that is to read Michael Hudson’s books. It is not an easy task. You will need a glossary of terms. In some...

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Everything you may have wanted to know about equilibrium in economics.Post Keynesianism generally dismisses the neoclassical assumption of equilibrium in economic theory, but these posts serve to clarify the concept and the debate around it. David Glasner explores the history, while Jason Smith comments on the concept for the POV of physics and explains it in terms of information equilibrium.Uneasy MoneyOn Equilibrium in Economic Theory David Glasner | Economist at the Federal Trade...

Good list. Anyone have suggestions to improve upon it, or a different list?I would include Abba Lerner and, of course, at least one MMT book.I would change the Galbraith entry to The Good Society.I would drop Paul Sweezy and replace his entry with Fred Moseley's Money and TotalityA Macro-Monetary Interpretation of Marx’s Logic in Capital and the End of the ‘Transformation Problem’.Lars P. Syll’s BlogTop 20 heterodox economics booksLars P. Syll | Professor, Malmo University

What Skidelsky and other critics of mainstream economics (both in its micro and macro parts) fail to recognise is that no new big idea willappear because mainstream economics is a deliberate result of the need to avoid considering the reality of capitalism. Its theories are ideological justifications of capitalism( its supposed tendency to harmonious growth, equilibrium and equality). When reality does not bear out the mainstream, it is ignored. That’s because ‘mainstream’ means support...

Brad rates this as a should-read. For anyone interested in Keynesianism, Post Keynesianism and MMT, the history of economics, or economic theory, it is a must-read. Conventional economists have apparently concluded that they don't need to read it if they even thought about, which most probably haven't, being under the spell of the "normal paradigm" in spite of its poor results empirically.Washington Center for Equitable GrowthJohn Maynard Keynes: Essays In Biography Brad DeLong Here...

To all who argued the financial world would’ve collapsed without the bailouts: The political world is collapsing now because of the bailouts — Emanuel Derman (@EmanuelDerman) June 25, 2016 The bigger picture of the early 21st century follows: Western nations experienced a massive blowout bubble of leverage, irrational exuberance, and Hayekian pseudo-money creation. Yet this money was not going to overwhelmingly productive causes. The real output of the Western world did not follow...

Share the post "Why No One Should Support the Gold Standard" The gold standard is silly.  No one should be in favor of going back to it.  Here’s why: The Gold standard does not create “Sound Money” policy. One of the biggest myths about the Gold Standard is that it will create “sound money” policies that won’t allow the government to debase the currency.  History shows this is totally wrong.  A gold standard does not restrict the government from devaluing the currency.  Over the course of...

Share the post "How Will the Fed Raise Rates?" A Federal Reserve rate hike is very likely to occur before the end of the year or in Q1.  But many are still unclear about how the Federal Reserve will raise rates.  After all, we’re in a new monetary environment in the post-crisis period thanks to the size of the Fed’s balance sheet.  I’ll try to touch briefly on this to clarify some concerns. In the pre-crisis period the Fed set a target rate for the overnight interest rate and altered the...