IMF’s World Economic Outlook On Global Imbalances

30 September 2014

The IMF has released a couple of chapters from its upcoming World Economic Outlook. There is one chapter Are Global Imbalances At A Turning Point, which talks of not just “flow imbalances” (current account deficits/surpluses) but also “stock imbalances” (international investment positions). There is a nice table with a lot of information (although it is interested […]

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Credit And Economic Growth

17 September 2014

In a new column for Bloomberg, Noah Smith questions the intuition that credit fuels economic growth. In which I question the most cherished belief of every economics writer in the Universe: http://t.co/3WRGjcGZXE — Noah Smith (@Noahpinion) September 16, 2014 He says: It seems like the only people who don’t instinctively believe in credit-fueled growth are […]

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Thomas Palley — The Theory Of Global Imbalances: Mainstream Economics Vs. Structural Keynesianism

26 August 2014

Thomas Palley has a new paper on global imbalances. It tells the story of how “the economics profession has been a gung-ho supporter of neoliberal globalization, using the rhetoric of free trade.” and how its narrative has changed over the years to keep the rhetoric intact. From the abstract: Prior to the 2008 financial crisis there was […]

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Thomas Palley — New Keynesianism As A Club

28 July 2014

Thomas Palley has a new blog post detailing how much recent new Keynesian theory is a rediscovery of ideas developed by old Keynesians and Post Keynesians over the past thirty years and that new Keynesians persistently fail to acknowledge that precedence. New Keynesianism as a Club Club, noun. 1. An association or organization dedicated to a particular […]

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ROKE Issue On Steve Keen’s Notion Of Aggregate Demand

22 July 2014

The new issue of ROKE (Review of Keynesian Economics) is online with a few articles available free for some time. Marc Lavoie, Thomas Palley and Brett Fiebiger comment on Keen’s notion of aggregate demand. Marc Lavoie’s article A comment on ‘Endogenous money and effective demand’: a revolution or a step backwards? is available here. Steve Keen’s […]

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Thomas Palley On The Phillips Curve

18 July 2014

Tom Palley has written a short note titled The Phillips Curve: Missing the Obvious and Looking in All the Wrong Places.  From the introduction: The Phillips Curve: Missing the Obvious and Looking in All the Wrong Places There is an old story about a policeman who sees a drunk looking for something under a streetlight […]

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Thomas Palley On Milton Friedman’s Shadow

7 July 2014

Thomas Palley has a new paper critiquing Milton Friedman’s influence on Economics: Milton Friedman’s economics and political economy: an old Keynesian critique Milton Friedman’s influence on the economics profession has been enormous. In part, his success was due to political forces that have made neoliberalism the dominant global ideology, but Friedman also rode those forces […]

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Marc Lavoie’s New Book

30 June 2014

Marc Lavoie is out with his new book Post-Keynesian Economics: New Foundations. (Publisher’s site for the book) As per the book’s website, The book is a considerably extended and fully revamped edition of the highly successful and frequently cited Foundations of Post-Keynesian Economic Analysis, published in 1992. It provides an exhaustive account of post-Keynesian economics and of the […]

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Greg Mankiw And Empirics

24 May 2014

Greg Mankiw wonders if teaching students empirics is feasible and answers in negative: Noah Smith says introductory economics needs to be more empirical. I understand his argument, and have some sympathy with it, but I wonder if the substantial change he seems to be proposing is practical. Economists usually do empirical work with statistical tools […]

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Steve Keen And Sectoral Balances

19 May 2014

Steve Keen has a new article on sectoral balances here. First apologies in advance for sometimes criticizing heterodox economists more but needless to say, such criticisms are of a totally different nature than criticisms of mainstream economists. Anyway, I am surprised at why Keen mixes accounting identities, especially when it involves banks in the analysis. […]

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