Tag Archives: Uncategorized

from David Ruccio Apologists for mainstream economics (such as Noah Smith) like to claim that things are OK because good empirical research is crowding out bad theory.  I have no doubt about the fact that the theory of mainstream economics has been bad. But is the empirical research any better? Not, as I see it, in the academy, in the departments that are dominated by mainstream economics. But there is interesting empirical work going on elsewhere, including of all places in the...

from Lars Syll The tiny little problem that there is no hard empirical evidence that verifies rational expectations models doesn’t usually bother its protagonists too much. Rational expectations überpriest Thomas Sargent has defended the epistemological status of the rational expectations hypothesis arguing that since it “focuses on outcomes and does not pretend to have behavioral content,” it has proved to be “a powerful tool for making precise statements.” Precise, yes, but relevant and...

from Dean Baker Most of us are willing to help out those who are less well off. Whether it comes from religious belief or a sense of basic decency we feel are an obligation to provide the basic necessities of life for the poor. But how would we feel about being taxed $1,000 a year to provide six figure salaries to people in the financial sector? Although no candidate to my knowledge has ever run on this platform, this is the nature of the retirement system the federal government has...

from David Ruccio As I tell my students, nothing gets a mainstream economist frothing at the mouth quite like mentioning Karl Polanyi. Or at least it used to, when mainstream economists actually knew who Polanyi was and grasped—however dismissively—what he wrote about the history of capitalism. To his credit, Eric Hilt (pdf) appears to know something about the author of The Great Transformation and how his work influenced the new history of capitalism. And his review of ten recent books,...

from Andrew Vonnegut and WEA Commentaries My work over almost 20 years would have pegged me as a pretty mainstream economist. I worked in company and market due diligence and risk analysis in emerging markets finance, then for two large international consulting firms in emerging markets policy advisory. A regular, mainstream, practicing economist. Then I returned to the United States, started teaching a global economics class, and looked for a text. Like my texts 25 years ago, materials...

With the the recent Equifax data theft fiasco, I thought of a post I wrote 10 years ago: Based on a conversation I had with reader Debbie, I was thinking about identity theft for the last day or so. I also had a discussion with the Ex-GF (for new readers, that’s my wife) about this; she was the victim of identity theft at one point. Its a big deal in this society, and I think I have a potential solution… If someone steals someone else’s identity, their...

from Lars Syll Well, if we are to believe most mainstream economists, models are what make economics a science. In a recent Journal of Economic Literature(1/2017) review of Dani Rodrik’s Economics Rules, renowned game theorist Ariel Rubinstein discusses Rodrik’s justifications for the view that “models make economics a science.” Although Rubinstein has some doubts about those justifications — models are not indispensable for telling good stories or clarifying things in general; logical...

Openings higher than hires tells me employers don’t want to pay up, which is also suggested by low wage growth: Highlights In the latest indications of strong, tight conditions in the labor market, job openings rose to a higher-than-expected 6.170 million in July for a 0.9 percent increase from June. Hirings also rose, up 1.3 percent to 5.501 million which, however, is 669,000 below openings. Openings have been far ahead of hirings for the past several years to indicate that...