Tag Archives: Economics

Paul Krugman has repeatedly over the years argued that we should continue to use maistream economics hobby horses like IS-LM and AS-AD models. Here’s one example: So why do AS-AD? … We do want, somewhere along the way, to get across the notion of the self-correcting economy, the notion that in the long run, we may all be dead, but that we also have a tendency to return to full employment via price flexibility. Or to put it differently, you do want somehow to make clear the...

The real value of analogue economies Modelling by the construction of analogue economies is a widespread technique in economic theory nowadays … As Lucas urges, the important point about analogue economies is that everything is known about them … and within them the propositions we are interested in ‘can be formulated rigorously and shown to be valid’ … For these constructed economies, our views about what will happen are ‘statements of verifiable fact.’...

Social ekonomi — den tredje vägen Verksamheter inom den sociala ekonomin har allmännytta och/eller medlemsnytta, inte vinstintresse som drivkraft.  Förskolor, fritidshem, fritidsgårdar, hemtjänst, äldreboenden, biblioteksfilialer, anläggningar inom kultur- och fritidsområdet är exempel på verksamheter som kan drivas av stiftelser, ideella föreningar eller ekonomiska föreningar … Kunskapen om den sociala ekonomin och dess betydelse för samhällets utveckling...

The first thing to understand about macroeconomic theory is that it is weirder than you think. The heart of it is the idea that the economy can be thought of as a single infinite-lived individual trading off leisure and consumption over all future time … This approach is formalized in something called the Euler equation … Some version of this equation is the basis of most articles on macroeconomic theory published in a mainstream journal in the past 30 years … The models may...

Far fuori il mito del NAIRU Anche se è diventata una credenza diffusa, la presunta relazione tra la disoccupazione e l’aumento o la riduzione dei tassi d’inflazione si stava sgretolando, in particolar modo negli anni ’90 del Novecento. Nel 2000 la disoccupazione era scesa al di sotto del 4% senza che l’inflazione decollasse. Dall’inizio della Grande Recessione, il divario tra la teoria e la realtà non ha fatto altro che ampliarsi… Una volta che ci si rende...

DSGE — a scientific illusion Dynamic stochastic general equilibrium (DSGE) models remain the work-horse models employed by many academics and research departments at central banks … Prior to the Global Financial Crisis the financial sector played no role in these DSGE models. That limitation is now widely acknowledged and numerous aspects of the financial sector have been incorporated into second and later generation DSGE models … Unfortunately, these...

Krugman on math and economics Another clip from my MasterClass (actually burn the *math*) pic.twitter.com/4BVyXNniLz — Paul Krugman (@paulkrugman) November 20, 2018 Yours truly have no problem with Krugman’s views on the use of math in this video in his recent tweet. I have said similar things myself for decades. But there is a BUT here … At other times Krugman — although admitting that economists have a tendency to use ”excessive math” and “equate hard...

Thanksgiving edition, by Jeff Mosenkis of Innovations for Poverty Action Image via FlickrTo make your cooking or holiday travel go a little faster IPA has our 2018 Great Holiday Travel Podcast Playlist up!Also if you’re killing time, read the abstracts from Jennifer Doleac’s thread of job market papers from women job candidates. I’m just going to drop you into the long thread here, at this dramatic paper from Jagori Saha showing how social protection programs in times of drought can save...

Listen to BBC 4 where Duncan Weldon tries to explain in what way Hyman Minsky’s thoughts on banking and finance offer a radical challenge to mainstream economic theory. As a young research stipendiate in the U.S. yours truly had the great pleasure and privelege of having Hyman Minsky as teacher. He was a great inspiration at the time. He still is. Advertisements

Gender pay gap and transparency Es wird oft vermutet, dass mehr Transparenz hier Abhilfe schaffen könnte: Wenn alle wüssten, was alle verdienen – dann wären diese Unterschiede nicht länger haltbar. Die zu kurz Gekommenen würden protestieren, mehr fordern und so für mehr Gleichheit und Gerechtigkeit sorgen. Seit dem 6. Januar dieses Jahres haben Beschäftigte ein Recht darauf zu erfahren, wie viel Kollegen beziehungsweise Kolleginnen des jeweils anderen...