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 […]


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 […]


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. […]


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. […]