Evan Soltas Is The Future Greg Mankiw

13 March 2014

A recent post of Paul Krugman points out to a “worrisome campaign against full employment”: The leader of this movement is an economics student named Evan Soltas, although Krugman doesn’t name him, maybe because Soltas is just a student. If you go over to Soltas’ blog, you will find the vaguest interpretations of data claiming […]


Bank Of England On Money Creation

12 March 2014

In the natural sciences, controversies are settled in a few months, or at a time of crisis, in a year or two, but in the social so-called sciences, absurd misunderstandings can continue for sixty or a hundred years without being cleared up. - Joan Robinson, 1981 (1979), What Are The Questions And Other Essays – Further Contributions To […]


Massive Overstatement Of Profits?

6 March 2014

In an article, The Profits’ Conundrum, Marshall Auerback uses Kalecki’s profit equation analysis (which is just a simple rearrangement of terms of the sectoral balances equation) to claim that corporate profits have been overstated in the United States. Now consider the US deficit and explain how on earth we can still have profits as a […]


The Writings Of Joan Robinson

4 March 2014

Maria Cristina Marcuzzo has a bibliography of Joan Robinson at her website. The scan is from a 7-volume set published by Palgrave Macmillan titled Joan Robinson: Writings on Economics. An earlier version appeared in the book The Economics Of Joan Robinson edited by Maria Cristina Marcuzzo, Luigi L. Pasinetti and Alessandro Roncaglia (Google Books link) (photography via NPG, London) […]


Exchange Rate Arrangements

28 February 2014

The IMF publishes a report annually on exchange rate arrangements and restrictions for all its members. This document is surprisingly not oft-quoted. You may find it very useful. The full report Annual Report On Exchange Arrangements And Exchange Restrictions can be obtained via courier from the IMF bookstore – it is a protected pdf on […]


Thomas Palley: Explaining Stagnation

26 February 2014

Thomas Palley has a write-up on the stagnation debate on his blog: Explaining Stagnation: Why it Matters Larry Summers (here) and Paul Krugman (here) have recently identified the phenomenon of stagnation.  Given that they are giants in today’s economic policy conversation, their views have naturally received enormous attention. That attention is very welcome because the […]


Neochartalism, Original Sin And The Backfire Effect

24 February 2014

[This post is a sort of part 2 of the previous post Indebtedness And Liability Dollarization] In the Neochartalist blogs, one frequently comes across the notion of monetary sovereignty, together with the notion of a “sovereign currency” – their notions of such things. One also sees an admission that countries whose governments have debt in foreign […]


Indebtedness And Liability Dollarization

19 February 2014

In the previous post, I commented on Neochartalists’ questionable intuitions on the external sector of an economy – let me add more. There is a silly notion in there that somehow public debt held by foreigners (but in domestic currency) is not debt in ordinary sense at all and things such as that. I will […]


Thomas Palley Dismembers MMT

17 February 2014

Thomas Palley has written another critique of Neochartalism aka “Modern Monetary Theory” in the blogosphere. Title and abstract: Modern money theory (MMT): the emperor still has no clothes  Eric Tymoigne and Randall Wray’s (T&W, 2013) defense of MMT leaves the MMT emperor even more naked than before (excuse the Yogi Berra-ism). The criticism of MMT […]


Tobinesque Models

15 February 2014

Paul Krugman writes today on his blog on James Tobin’s work: Let me offer an example of how this ended up impoverishing macroeconomic analysis: the strange disappearance of James Tobin. In the 1960s Tobin developed and elaborated a sophisticated view(pdf) of financial markets that offered insights into things like the role of intermediaries, the effects of […]