Thomas Palley — More On The Mainstream (Not Wonkish)

2 May 2014

Thomas Palley replies to Krugman’s blog post from yesterday. Paul Krugman wrote a reply to my two postings (Part 1 and Part 2) on the flimflam of mainstream economics. Below is my response to Paul that was posted as a comment on his Conscience of a Liberal website. I am posting it because I think it sheds more light on […]


Thomas Palley — Looking For Flimflam: Some Hints On Where To Find It

1 May 2014

Thomas Palley replies to Simon Wren-Lewis: Simon Wren-Lewis has graciously replied to my post on mainstream economics’ flimflam and says he cannot find it (the flimflam). Here are some hints on where to look.  Read More here


Thomas Palley — The Flimflam Defense of Mainstream Economics

30 April 2014

Thomas Palley has a new op-ed in response to Paul Krugman: The teaching of economics has recently been in the news. One reason is the activities of Manchester University undergraduates who have formed the Post-Crash Economics Society to protest the monopoly of mainstream neoclassical economics in university lecture halls. A second reason is criticism of the neoclassical […]


Paul Krugman, Gattopardo Economist, Part 2

25 April 2014

As mentioned in my previous blog, Paul Krugman tries his best to put down heterodoxy. His claims that nobody predicted the crisis is deeply unintellectual when someone such as Wynne Godley and other heterodox economists had warned about it. Moreover, Jan Hatzius who uses Wynne Godley’s approach also had made a case for a severe […]


Paul Krugman, Gattopardo Economist

25 April 2014

In response to Thomas Palley’s op-ed, Paul Krugman has written a couple of pieces on his New York Times blog (here and here) I have seen many heteredox economists defending Krugman but these pieces should now make it crystal clear that Paul Krugman himself is the head of Gattopardo Economics. Consciously or subconsciously, Krugman’s strategy has been […]


Thomas Palley On Thomas Piketty’s Capital

23 April 2014

Thomas Palley has an open-ed on Thomas Piketty’s book Capital In The Twenty First Century.  The accidental controversialist: deeper reflections on Thomas Piketty’s “Capital” Thomas Piketty’s Capital in the Twenty-First Century is a six hundred and eighty-five page tome that definitively characterizes the empirical pattern of income and wealth inequality in capitalist economies over the past two hundred and […]


Thomas Palley On Asset Based Reserve Requirements

10 April 2014

Thomas Palley has a new paper Monetary policy after quantitative easing: The case for asset based reserve requirements (ABRR). Abstract: This paper critiques the Federal Reserve’s quantitative easing (QE) exit strategy which aims to deactivate excess liquidity via higher interest rates on reserves. That is equivalent to giving banks a tax cut at the public’s expense. […]


Keen’s Reply To Palley

8 April 2014

Steve Keen has replied to Thomas Palley’s critique of him with an article How not to win an economic argument. All models are incomplete because they ignore many complications in order to highlight a few key concepts. In other times, a simple model is a starting point with the aim that the modeler adds more complications […]


Profits And Borrowing

4 April 2014

I think Marshall Auerback is seriously mixing up different parts of the flow of funds accounts of an economy. He is heteredox, so it will be good if he gets these things right. In his latest, he asks Why Are US Corporations Borrowing So Much If Profits Are At A Record Percentage Of GDP?, i.e., the […]


The Phrase Money Multiplier Itself Is Inaccurate And Misleading

31 March 2014

Some people point out that the critique “there is no money multiplier” is wrong because it is a ratio whatever said. No! The phrase “money multiplier” itself is wrong because the phrase itself captures a wrong causal story. A phrase is a small group of words standing together as a conceptual unit and hence the phrase […]