Category Archives: Economic Theory

The Interaction of Economists and Money Cranks in the Depression Years

Posted on April 17, 2014 by pilkingtonphil

Yesterday I ran a post that briefly delved into the connection between Keynes and the money cranks of the 1920s and 1930s. There I showed that Keynes’ ideas cannot be said to have been influenced in any substantial way by … Continue reading →

Posted in Economic History, Economic Theory, Politics | 90 Comments

Was Keynes a Money Crank or is Gary North?

Posted on April 16, 2014 by pilkingtonphil

Following on from my last piece on the money cranks I thought it might be worthwhile to explore this theme in a little more detail. First we will look in more detail at Keynes’ relationship toward certain money cranks. And … Continue reading →

Posted in Economic Theory | 7 Comments

The Yield Curve and Recessions: Against US-Centricism

Posted on April 11, 2014 by pilkingtonphil

One of the nicest stylised facts in applied economics is that if the Fed inverts the yield curve it will cause a recession. Inverting the yield curve basically means that the Fed hikes the short-term interest rate goes higher than … Continue reading →

Posted in Economic History, Economic Policy, Economic Theory | 24 Comments

The Concept of Time Preference is Completely at Odds With Reality

Posted on April 8, 2014 by pilkingtonphil

A conversation that I was having yesterday reminded me of a rather funny point in economic theory. When we consider the value of a financial asset we take into two components: that is, it’s price and it’s income stream. It’s … Continue reading →

Posted in Economic Theory, Statistics and Probability | 29 Comments

What Constitutes a Money Crank?

Posted on April 7, 2014 by pilkingtonphil

I’ve been asking myself that question rather a lot in the past two weeks. This is because I have had two separate commissions for pieces of writing that require me jump down the rabbit hole into the land of the … Continue reading →

Posted in Economic Theory, Politics, Psychology | 19 Comments

Marginalist Microeconomics: The Path to Totalitarian Tyranny

Posted on April 3, 2014 by pilkingtonphil

Kevin Hoover, although not generally well-known in Post-Keynesian circles, is easily one of the most interesting economists writing on epistemology and ontology today. He was originally an applied macroeconomist but, like anyone who is remotely philosophically literate, he quickly began … Continue reading →

Posted in Economic Policy, Economic Theory, Philosophy, Politics | 9 Comments

Misdirection: Galbraith on Piketty’s New Book on Capital

Posted on April 1, 2014 by pilkingtonphil

I’ve been waiting for this for some time but now Jamie Galbraith has come out and provided an extensive discussion of Thomas Piketty’s new book Capital in the Twentieth Century. While I haven’t yet read Piketty’s book its difficult not … Continue reading →

Posted in Economic History, Economic Policy, Economic Theory | 32 Comments

Was Marx Right?

Posted on March 31, 2014 by pilkingtonphil

Well, it looks like The New York Times has opened a bit of a can of worms by asking Was Marx Right?. I generally find that this question to be a bit annoying. Was Marx right about what, specifically? That … Continue reading →

Posted in Economic History, Economic Theory | 20 Comments

Why Long-Run Theories of Profit and Accumulation Fall Short

Posted on March 28, 2014 by pilkingtonphil

Nothing gets heterodox economists quite so fussed as the long-run theory of the rate of profit. Yet, Keynes did without one altogether and when examined closely there is no way that such a theory can say anything tangible about the … Continue reading →

Posted in Economic Theory | 4 Comments

Krugman Uses ISLM to Proclaim Looming Fiscal Crisis, Denounces Those Who Don’t Use ISLM

Posted on March 27, 2014 by pilkingtonphil

Some people often ask why I complain about Krugman. “Hey Phil, Krugman is a good guy. He likes government spending. You like government spending. Therefore you must like Krugman,” says our budding young Socrates. Well, I’ll tell you why: because … Continue reading →

Posted in Economic History, Economic Policy, Economic Theory | 26 Comments