Category Archives: Economic Theory

Interest Rates and ‘Reserve Constraints’: Why Endogenous Money Works Without Central Bank Intervention

Posted on June 27, 2014 by pilkingtonphil

Endogenous money advocates often think that a central bank is required in order to offset increases in government borrowing. The story goes: the central bank targets the overnight interest rate by buying up government securities; if the government issues more … Continue reading →

Posted in Economic History, Economic Theory | 56 Comments

‘Uncertainty’ in Contemporary DSGE Modelling: Not Even Wrong

Posted on June 25, 2014 by pilkingtonphil

Confusion of thought and feeling leads to confusion of speech. — John Maynard Keynes Readers will note that I very rarely discuss DSGE modelling on here. Frankly, I’m not enormously interested. The fad is one in which economists — or, … Continue reading →

Posted in Economic Theory | 79 Comments

A Series of Interviews on My Forthcoming Book — Part Deux

Posted on June 23, 2014 by pilkingtonphil

The next part of the interview on my new book. This one deals with less methodological issues, as did the previous interview, and focuses on actual substantive issues. We discuss aggregate demand, theories of financial markets — including a discussion … Continue reading →

Posted in Economic Theory | 5 Comments

A Series of Interviews on My Forthcoming Book.

Posted on June 21, 2014 by pilkingtonphil

Amogh Sahu recently did along series of interviews with me based on what will be in my forthcoming book. The first interview is up now and it deals broadly with methodology and epistemology. There’s also some discussion of equilibrium methods … Continue reading →

Posted in Economic Theory, Philosophy | 2 Comments

Tobin’s Q: A Wily Trickster and Slightly Vacuous

Posted on June 17, 2014 by pilkingtonphil

I was writing an article this morning for an internet website about the recent IMF proclamations that there may be a global housing bubble underway. The article, if it runs, should be online next week and I will link to … Continue reading →

Posted in Economic Policy, Economic Theory | 6 Comments

Articles on the Natural Rate of Interest and the Relationship Between Central Banking and the New Nationalisms

Posted on June 9, 2014 by pilkingtonphil

Well, I’m still slaving away on the book. I hope regular readers will appreciate the fall-off in posts in this regard. The book will be worth it. I promise. Anyway, the ever present drip of my publications elsewhere should prove … Continue reading →

Posted in Economic Policy, Economic Theory | 40 Comments

What Would Keynes Have Said About the Current Stagnation?

Posted on May 31, 2014 by pilkingtonphil

Readers may have noted some absence on the blog over the past few days. This is because I am currently writing a book which seems to be sapping all my writerly juices at the moment. I have about a third … Continue reading →

Posted in Economic Policy, Economic Theory | 14 Comments

The Difference Between Keynesian Kaleido-Static Reasoning and Mainstream Methodology

Posted on May 22, 2014 by pilkingtonphil

In order to give an adequate definition of what has been called Keynesian kaleido-statics it is first relevant to define it against that out of which it grew. Keynes’ work, as has been noted many times, grew out of the … Continue reading →

Posted in Economic Theory, Philosophy | 10 Comments

Two Different Approaches to Economics and One Approach to Pseudo-Economics

Posted on May 20, 2014 by pilkingtonphil

In the comments to my piece on Janet Yellen the hypocrisy of my position was pointed out, as it so often is, by a certain reader of this blog. What was my hypocrisy on this particular occasion? It was the … Continue reading →

Posted in Economic Theory, Philosophy | 26 Comments

Slackers: How the Multiplier Works in the Real World

Posted on May 19, 2014 by pilkingtonphil

In a previous post I wrote about the key reason that the natural rate of interest does not exist. There I discussed the Kahn Multiplier. We saw that when investment increased consumption increased along with it due to the fresh … Continue reading →

Posted in Economic Theory | 9 Comments