Monthly Archives: July 2014

How to Approach the Problem of Inflation in Economics

In my previous post I laid out why the Phillips Curve theory of inflation is wrong and why it was misguided to try to rebuild it. The key point I made in that regard was that inflation is a complex, … Continue reading

Posted in Economic Policy, Economic Theory | 5 Comments

The Phillips Curve: Timelessly Misleading

Tom Palley has written a blog post politely requesting that Paul Krugman might give a bit of recognition to non-mainstream contributors to economics. It would be nice to see this happen but I doubt that it will (although Palley is … Continue reading

Posted in Economic History, Economic Theory | 28 Comments

Murray Rothbard, Edmund Burke and Intellectual Myopia

There is nothing so sad as to watch someone mistake a parody of his character for a complement. I suppose there are three ways to respond to people having fun on your behalf. The first, and most endearing, is to … Continue reading

Posted in Philosophy, Politics | 6 Comments

Meanwhile, in the Meeja

I have written a piece for Al Jazeera on Janet Yellen’s recent comments on specific asset markets. This is a big turning point for the Fed but it leads to major contradictions in their policy goals. Fed’s targeting of asset … Continue reading

Posted in Market Analysis, Media/Journalism | Leave a comment

Financial Markets in Keynesian Macroeconomic Theory 101

Yesterday when I published my post on Krugman and the vulgar Keynesians not understanding the meaning to the term ‘liquidity trap’ I came to realise that many readers — both sympathetic and hostile — do not really understand the Keynesian … Continue reading

Posted in Economic Theory, Market Analysis | 20 Comments

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 | 42 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 | 13 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