Tag Archives: economics profession

Includes Stiglitz quote, "there is no invisible hand."Lars P. Syll’s BlogRational expectations — the triumph of ideology over science Lars P. Syll | Professor, Malmo University

Of interest to Kaldorians, Post Keynesians, and modern monetary theorists (MMT).EconospeakHow I Came To No Longer Be A Kaldorian EconomistJ. Barkley Rosser | Professor of Economics and Business Administration James Madison University

The major trends in the development of economics summarized. How the profession lost the plot and also its way.Real-World Economics Review BlogEconomics as science in the world of great power politics (1800-present) Robert Locke

Pramit Bhattacharya quote.  Double significant since it is a signal of rising criticism of the profession coming from outside the Anglo-American world that is presently dominant. Hopefully, this is a sign that this domination of ideas and methods will not spread and will be balanced soon. Lars P. Syll’s BlogSeven sins of economicsLars P. Syll | Professor, Malmo University

Swiss psychiatrist Elisabeth Kübler-Ross, a pioneer in the field of grief counselling, identified the five stages of grief as denial, anger, bargaining, depression, and acceptance. This extract from Economyths draws on her model of grief as inspiration to chart the long, arduous, but ultimately healthy and healing (we hope, it’s not over yet) process as the economics profession slowly comes to terms with its role in the Great Financial Crisis.... EvonomicsEconomyths: The Five Stages of...

Although this sounds extremely harsh, it is the only way to describe aspects of DSGE macro such as the assumption that the level of interest rates is a key determinant of economic behaviour. In practice, this assumption is built into all mainstream models, and the empirical methodologies have no way of rejecting the assumption. It is not entirely an accident that the consensus has been shocked by the slow pace of recovery after modern recessions -- after all, it was believed that the level...

Just why is anyone still going to these people for policy advice, let alone putting some of them in charge of setting policy? The power of elite discourse to persuade is dangerous when an elite controls the frame and there is no accountability for results. Lars P. Syll’s Blog Stiglitz and the full force of Sonnenschein-Mantel-Debreu Lars P. Syll | Professor, Malmo University

So how do you make good predictions? I met “superforecaster” Michael Story, who was ranked 18th best among the 20,000 people who formed the Good Judgment team. The team took part in a competition conducted by the US intelligence community to find the world’s best forecasters. Launched in 2011, the four-year contest required the group to provide forecasts on 500 questions ranging from the future for oil prices to the financial outlook. The Good Judgment team won the tournament, reportedly...

Robert Solow destroys economics as a hard science. Of course, he is not alone in this. Heterodox economists have been pointing this out for a long time, and so have observers from other disciplines looking in. And this is not the only reason. For example, key terms are poorly specified as shown by the Cambridge capital controversy that Solow was involved in with Samuelson on the losing side. Business schools figure this out some time ago and switched to the case method.Lars P. Syll’s...