Tag Archives: john maynard keynes

Hyman Minsky quote.Lars P. Syll’s BlogWhat is missing in Keynes’ General Theory Lars P. Syll | Professor, Malmo University

Paul Krugman still wrong. The mainstream model of an economy based on general equilibrium, rational utility maximization, and money neutrality is one of a possible world that doesn't exist and can't exist in a monetary production economy. There is nothing wrong with constructing models of possible worlds, and, in fact, all models exist in possibility space, not real space. But it is wrong to claim or imply that such models of possible worlds apply to the real world when there is evidence...

Banks are not intermediaries between savers and borrowers, and finance is not allocating existing savings to future investment. The opposite is true. Bank credit is self-funding; in credit extension, loans (assets) create deposits (liabilities). In finance as allocation of capital, investment creates saving.Lars P. Syll’s BlogKalecki and Keynes on the loanable funds fallacyLars P. Syll | Professor, Malmo University

Short synopsis of the General Theory.The Political Economy of DevelopmentRe-reading KeynesNick Johnson

Keynes and the fundamentals of probability.Lars P. Syll’s BlogTruth and probabilityLars P. Syll | Professor, Malmo University

Summary of the issues and argument.Interestingly, Tinbergen was award a "Nobel" (1969), while Keynes was never so honored in spite of being one of the most significant contributors to economics and economic policy in the 20th century, if not the most significant. Now, "Keynes" and "Keynesianism" are household words, while few remember Tinbergen other than related to Keynes-Tinbergen controversy.Lars P. Syll’s BlogEconometrics: The Keynes-Tinbergen controversyLars P. Syll | Professor, Malmo...

THE MUST-READ OF MUST-READS on the links between behavioral finance and macro: John Maynard Keynes (1936): The State of Long-Term Expectation: The General Theory of Employment, Interest and Money: Chapter 12: "If I may be allowed to appropriate the term _speculation for the activity of forecasting the psychology of the market, and the term enterprise for the activity of forecasting the prospective yield of assets over their whole life, it is by no means always the case that speculation...

In a previous post (Milton Friedman: A Man of the Past?), I concluded that Milton Friedman, an extreme advocator of "free market" and individualism, is mostly an economist of the past. In this post, I will highlight John Maynard Keynes, a balanced advocator of both "free market" and "managed market", as the best economist since 1899.... Frank Li is a Chinese ex-pat now a businessman in the US, has a BE, ME, and PdD in electrical engineering. So cut him some space on the economics. He is...

Keeper Keynes quote.The reference is "Economic Possibilities for our Grandchildren," Section II, in John Maynard Keynes, Essays in Persuasion, New York: W. W. Norton & Co., 1963, pp. 358-373.Lars P. Syll’s BlogMoney in perspective Lars P. Syll | Professor, Malmo UniversitySee alsoIdeological through and through, because economics is joined at the hip with political economy, and, in fact, used to be called political economy. Political economic is, of course, joined at the hip with...

The balanced budget paradox is probably one of the most devastating phenomena haunting our economies. The harder politicians — usually on the advice of establishment economists — try to achieve balanced budgets for the public sector, the less likely they are to succeed in their endeavour. And the more the citizens have to pay for the concomitant austerity policies these wrong-headed politicians and economists recommend as “the sole solution.” There are three budget views.1. Balanced budget...