Monthly Archives: August 2014

Confusing Accounting Identities With Behavioral Equations

Here’s an interesting little debate from earlier this year that I came across yesterday evening. It is between a number of market analysts over whether the current stock market is overvalued. Why is that interesting? Because the argument is focused on … Continue reading

Posted in Economic Theory, Market Analysis | 25 Comments

Taxation, Government Spending, the National Debt and MMT

The other day my friend Rohan Grey — a lawyer and one of the key organisers behind the excellent Modern Money Network (bringing Post-Keynesian economics to Columbia Law School, yes please!) — directed me to an absolutely fascinating piece of writing. … Continue reading

Posted in Economic Policy, Economic Theory | 23 Comments

Does the Central Bank Control Long-Term Interest Rates?: A Glance at Operation Twist

  Although less prevalently talked about today many economists assume that while the central bank has control over the short-term rate of interest, the long-term rate of interest is set by the market. When Post-Keynesians make the case that when … Continue reading

Posted in Uncategorized | 14 Comments

Financial Times Contributors Understand ‘Liquidity Trap’ Better Than Neo-Keynesians Like Krugman

I have long complained that the likes of Paul Krugman have grossly misinterpreted the meaning of the term ‘liquidity trap’. These economists seem to think that we are currently in a liquidity trap despite the fact that yields on bonds are … Continue reading

Posted in Economic Theory | 6 Comments

On Meta-Analysis in Economics

Did you know that if you are male and eat beans every Tuesday morning at exactly 8.30am you are more likely to marry a supermodel? No. That’s not true. I just made that up. But I hear of statistical studies … Continue reading

Posted in Statistics and Probability | 6 Comments

Is There Such Thing as an ‘Economics-Based Psychotic Delusion’?

There is a somewhat well-known phenomenon called Jerusalem Syndrome that has gained some currency in popular culture (you can see some TV clips from the 1990s here). The folk legend goes something like this: people who are perfectly well-balanced psychologically … Continue reading

Posted in Psychology | 14 Comments

INET YSI Discussion of a Chapter of My Forthcoming Book

Earlier this week Amogh Sahu set up a INET YSI discussion group to deal with the 4th chapter of my forthcoming book which is entitled ‘Schemata: Abstraction and Modelling’. This is not available yet but I shared a draft with … Continue reading

Posted in Economic Theory, Philosophy | Leave a comment