Monthly Archives: November 2013

Something is Rotten in the State of Macro: Krugman’s Continued Hypocritical Defence of the Status Quo

Paul Krugman is out again defending mainstream economics against students and others who rightly suspect that it has taken a wayward path. I won’t go too much here into Krugman’s own history as a gatekeeper for orthodox economics, having dug … Continue reading

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Posted in Economic Theory, Media/Journalism | 1 Comment

In the Short-Run We Are All Dead: Probability Theory and Short-Termist Investment

Keynes famously said that in the long-run we are all dead. What he was counseling against was the tendency on the part of economists to discuss economic processes in terms of the so-called ‘long-run’. This idea, which I have written … Continue reading

Posted in Economic History, Economic Policy | Leave a comment

Yanis Varoufakis Publishes Some of My Ramblings on the State of Ireland

Yanis emailed me for my thoughts on Ireland’s recent return to the bond market. He has published his own analysis with mine thrown in at the end here. Note the Freudian slip wherein I misspell ‘Fianna Fail’, who are the … Continue reading

Posted in Economic Policy, Market Analysis | 4 Comments

Purchasing Power Parity (PPP) and the Exchange Rate

There is a theory that floats around out there called the ‘Purchasing Power Parity theory of the Exchange Rate’ — or something to that effect, the name seems to change depending on what source you go to. The theory, stripped … Continue reading

Posted in Economic History, Economic Theory, Market Analysis | 6 Comments

An Excellent Guide to Using Gretl

For those that don’t know Gretl is a freeware econometrics package. Despite not costing anything I’ve found it to be a very useful econometrics program that can do pretty much anything — or, at least, anything that I’ve ever wanted … Continue reading

Posted in Statistics and Probability | 4 Comments

Further Problems With the Static Framework of the ISLM

Yesterday I did a short post on how the ISLM model misrepresents how interest rates function because it views them as static. Today I would like to make a further, if more difficult point: namely, that the very way in … Continue reading

Posted in Economic Policy, Economic Theory | 9 Comments

Problems with Static Interest Rates in the ISLM

The ISLM takes quite a beating from Post-Keynesians — and, I would argue, rightly so. There are any number of reasons for this but let me just here highlight one that is not very regularly talked about. As is well-known … Continue reading

Posted in Economic Policy, Economic Theory | 4 Comments

Steve Keen’s AS-AD Curves and a Suggestion For a New Stock-Flow Equilibrium Approach

A commenter on Lord Keynes’ blog recently called my attention to something rather interesting; namely, that Steve Keen seems to be using some sort of supply and demand framework to determine price in the macroeconomy in his models. Let me … Continue reading

Posted in Economic Theory | 11 Comments

Capital Sins: To What End Should Economic Life Be Directed?

Victoria Chick published an interesting paper in the journal Economic Thought on the World Economic Association website entitled Economics and the Good Life: Keynes and Schumacher. In it she explores what both men thought that the end goal of economics … Continue reading

Posted in Philosophy, Politics, Psychology | 1 Comment

What Happened to Science and Research Funding?

I’ll never forget the reaction of a scientist I once met, a chemist who had transitioned into corporate management, when I told her that I was an economist. “Oh,” she said, “so you’d know something about corporations and how they … Continue reading

Posted in Economic Policy, Economics of Science and Technology | 9 Comments