Author Archives: pilkingtonphil

About pilkingtonphil

Philip Pilkington is a London-based economist and member of the Political Economy Research Group (PERG) at Kingston University. You can follow him on Twitter at @pilkingtonphil.

Paul Krugman Does Not Understand the Liquidity Trap

I came across a very amusing piece from Krugman in 2010. The piece is entitled ‘Nobody Understands the Liquidity Trap‘. Actually, Krugman might have a point — if we include him in the ‘everybody’ that does not understand the liquidity … Continue reading

Posted in Economic Theory | 9 Comments

Can Lachmann’s Arbitrage Save the Austrian Theory of the Interest Rate?

This is the second part of my criticism of Glasner and Zimmerman’s paper. The first part can be found here and should be read and understood before proceeding with the second part. Glasner and Zimmerman note that Ludwig Lachmann tried … Continue reading

Posted in Economic Theory | 7 Comments

Glasner and Zimmerman on the Sraffa-Hayek Bust-Up and the Natural Rate of Interest

David Glasner from over at the blog Uneasy Money has co-written an interesting paper on Sraffa and his critique of the natural rate of interest as it was put forward in Hayek’s business cycle theory. There is a lot that … Continue reading

Posted in Economic Theory | 12 Comments

Uncertainty and Freedom

I am beginning to increasingly think that Keynes’ economics, with its every present emphasis on uncertainty, is actually an economics that takes the idea that humans are free seriously. That is, it is an anti-deterministic economics. I think that the … Continue reading

Posted in Philosophy | 10 Comments

Mainstream Economists Completely Incoherent on the Effects of Monetary Policy

Bill Mitchell has a post up on his blog today criticising Mankiw’s textbook which apparently has a new edition coming out. Basically Mankiw is stuck in monetarist-land telling students that “banks control the money supply” and all that other nonsense … Continue reading

Posted in Economic Theory | 8 Comments

A Storm is Coming: On the Rethinking Economics Conference in London

I’ve published a piece on Al Jazeera that gives an account of the extremely impressive London conference that the students fighting to change economics put on at the end of last month. There are some nice anecdotes and I think … Continue reading

Posted in Economic Theory, Media/Journalism | Leave a comment

Keynes’ General Theory, the ISLM and Roy Harrod’s ‘Dynamics’

Too often discussions of the relationship between Keynes’ General Theory and the ISLM model focus on John Hicks’ 1937 paper ‘Mr. Keynes and the Classics‘. That paper appeared in the April edition of Econometrica, Volume 5, Issue 2. But Roy … Continue reading

Posted in Economic Theory | 8 Comments

Stock Market Crash!

Did that title get your attention? I’d imagine that it did. There’s nothing like predictions of a crashing stock market to get the attention of readers. Well, I’m not quite willing to make any firm predictions. Rather I want to … Continue reading

Posted in Market Analysis | 14 Comments

The Great Unwinding: Some Thoughts on the Incoherence of Mainstream Economics

A recent post by Lord Keynes inspired me to write up some very general thoughts on the state of mainstream economics. Today, I believe, mainstream economics is completely incoherent. What do I mean by that? Well, basically if you are … Continue reading

Posted in Economic History, Economic Theory | 31 Comments

Against Marginalist Pricing Theory: US Consumer Prices and Capacity Utilisation

Marginalist economic theory tells us that when there is unemployment of capital resources prices should fall. Some marginalists like the New Keynesians and the neo-Keynesians will supplement this by saying that prices can tend to be ‘sticky’. Let us ignore … Continue reading

Posted in Economic History, Economic Theory | 59 Comments