Tag Archives: Economics

At last — a real-world economics textbook In the real world, where issues of motivation, labor relations, and power are also important, the classical idea that [regulations, labor union activities, and public ‘safety net’ policies] cause substantial unemployment can be called into question … Alternative explanations of the working of labor markets suggest a different perspective … While some Keynesian theorists emphasize sticky wages, Keynes’s critique of...

Vem får Nobelpriset i ekonomi 2017? Traditionsenligt anordnas i dagarna en omröstning om vem Ekonomistas läsare tror kommer att få årets s. k. Nobelpris i ekonomi. Lika traditionsenligt finns det bara med en svensk på Ekonomistas lista. En person som inte alls hör hemma på en sådan lista. Sedan lång tid har vårt lilla land inte lyckats avla fram några riktigt framstående neoklassiska mainstream — andra kommer som vi alla vet ytterst sällan i fråga —...

On the importance of pluralism Theorien für die keine Alternativen in Betracht kommen scheinen, degenerieren allzuleicht zu dogmatisierten Systemen, die ihre Schwierigkeiten mit Hilfe von Alibi-Klauseln, ad-hoc-Annahmen und Abgrenzungspraktiken, kurz; durch Anwendung von Immunisieringsstrategien, zu bewältigen. Hans Albert Marktsoziologie und  Entscheidungslogik The only economic analysis that mainstream economists accept is the one that takes place within...

Why MMT is so popular Now we can see why MMT is so popular … We are in an MMT world, where we should be using fiscal policy and not worrying about the deficit, but policymakers don’t understand that. I think most mainstream macroeconomists do understand this, but we are not often heard. The ground was therefore ripe for MMT. Policymakers following austerity when they clearly should not annoys me a great deal, and I am very happy to join common cause with...

Mainstream economics — like butter scraped over too much bread Much of current academic teaching and research has been criticized for its lack of relevance, that is, of immediate practical impact … I submit that the consistently indifferent performance in practical applications is in fact a symptom of a fundamental imbalance in the present state of our discipline. The weak and all too slowly growing empirical foundation clearly cannot support the...

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Why game theory will be nothing but a footnote in the history of social science Nash equilibrium has since it was introduced back in the 50’s come to be the standard solution concept used by game theorists. The justification for its use has mainly built on dubious and contentious assumptions like ‘common knowledge’ and individuals exclusively identified as instrumentally rational. And as if that wasn’t enough, one actually, to ‘save’ the Holy Equilibrium...

[unable to retrieve full-text content]Causal Friday: In Which I’m Supposed to Believe That Kneeling Makes One Worse at Sport Ball…: This should keep data nerds occupied for the weekend…. :)

Rational expectations — the triumph of ideology over science Research shows not only that individuals sometimes act differently than standard economic theories predict, but that they do so regularly, systematically, and in ways that can be understood and interpreted through alternative hypotheses, competing with those utilised by orthodox economists. To most market participants — and, indeed, ordinary observers — this does not seem like big news … In fact,...

[unable to retrieve full-text content]So You Think You Know Golden Parachutes…: Did you know that words mean things? :)