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from Lars Syll The other day yours truly was sent a copy of the new edition of Chad Jones intermediate textbook Macroeconomics (4th ed, W W Norton, 2018). There’s much in the book I like, e. g. Jones’  combining of more traditional short-run macroeconomic analysis with an accessible coverage of the Romer model — the foundation of modern growth theory — and DSGE business cycle models. Unfortunately it also contains some utter nonsense! In chapter 7 — on “The Labor Market, Wages, and...

Not a pretty sight:

from Asad Zaman Currently, I am teaching a course in Advanced Microeconomics where I have started with the premise that conventional economic theory, both Micro and Macro are fundamentally wrong. The number of ways in which they are wrong cannot even be counted. Instead of enumerating errors, the course is devoted to providing a constructive alternative. A lot of the early lectures deal with the basic concepts of optimization and equilibrium, the fundamental building blocks of...

from Lars Syll Alex Rosenberg — chair of the philosophy department at Duke University, renowned economic methodologist and author of Economics — Mathematical Politics or Science of Diminshing Returns? — had an interesting article up on What’s Wrong with Paul Krugman’s Philosophy of Economics some time ago. Writes Rosenberg: Krugman writes: ‘So how do you do useful economics? In general, what we really do is combine maximization-and-equilibrium as a first cut with a variety of ad hoc...

Highlights The labor train is back on the tracks as nonfarm payrolls reversed the prior month’s weakness and came in on the high side of expectations, up 211,000 in April vs a revised 79,000 in March for the third 200,000 plus reading so far this year. Payroll gains are centered in business services, in what points to capacity constraints among employers, and also government which added 17,000 to April’s total. Strength in the labor market continues to pull down the...

from Mark Weisbrot As France heads into the second and final round of its presidential election on Sunday, a number of observers have compared the choice between the far-right candidate Marine Le Pen and centrist neoliberal Emmanuel Macron with the Trump-Clinton contest of 2016. There are similarities: Le Pen, who is politely called xenophobic, like Trump represents an anti-immigrant, right-wing nationalism combined with some populist appeals. Macron is a former investment banker and...

from David Ruccio What happens when you combine conspicuous consumption and consumption productivity? You get Barracuda Straight Leg Jeans—complete with “crackled, caked-on muddy coating”—on sale for $425 at Nordstrom. When Thorstein Veblen invented the term “conspicuous consumption,” in his Theory of the Leisure Class (pdf), he was referring to late-nineteenth-century America as having entered the “predatory phase” of culture, when the people at the top obtained their goods by seizure...

The Review of Keynesian Economics (ROKE) and the Progressive Economic Forum (PEF) are hosting a: “Post-Keynesian Summer School”, on the campus of the University of Toronto, June 23-25, 2017. Over 2 and a half days, the summer school will introduce students to post-Keynesian economics, both theory and policy, and will feature some of the biggest names in post-Keynesian economics.  Registration is only $50 US, and includes all coffee breaks and a reception. The school is open to both...

Highlights Factory orders, like much of the economy, fizzled in March, up only 0.2 percent and skewed higher for a third month in a row by aircraft. The split between the report’s two main components shows a 0.5 percent dip for nondurable goods — the new data in today’s report where weakness is tied to petroleum and coal — and a 0.9 percent rise for durable orders which is 2 tenths higher than last week’s advance report for this component. The gain for durables looks...