fiscal policy

Free Trade And Tight Fiscal Policy

22 September 2015

Harvard economist Dani Rodrik recently responded to a question/critique on why he doesn’t believe in the faith about free trade between nations while not showing that much dissent for trade within boundaries. Among the various points in his defence are fiscal transfers and regional policies. Rodrik says: Another thing that happens is that there is an […]


Casual Monetarism

14 September 2015

In an Op-Ed for The New York Times, Japan’s Economy, Crippled by Caution, Paul Krugman is seen using a highly Monetarist language: As I said, you might think that ending deflation is easy. Can’t you just print money? But the question is what do you do with the newly printed money (or, more usually, the bank […]


Do Keynesians Ought To Love Tax Cuts?

11 September 2015

Cullen Roche – in response to Paul Krugman – says Keynesians should learn to love tax cuts. His argument is that since Keynesians believe in the principle of effective demand and that since tax rate cuts boosts domestic demand and hence output, it is surprising to find Paul Krugman not favouring tax cuts. Tax cuts raise output by […]


Thomas Herndon!

24 April 2013

So Comedy Central had a nice show on the Reinhart-Rogoff episode and how their work was used to drive world-wide austerity. The show featured Thomas Herndon – the graduate student from the University of Massachusetts Amherst who found errors in R&R’s work. Great work Thomas! Worth a watch: (Click the two pictures to watch the videos […]


… One Funeral At A Time?

8 April 2013

Eine neue wissenschaftliche Wahrheit pflegt sich nicht in der Weise durchzusetzen, daß ihre Gegner überzeugt werden und sich als belehrt erklären, sondern vielmehr dadurch, daß ihre Gegner allmählich aussterben und daß die heranwachsende Generation von vornherein mit der Wahrheit vertraut gemacht ist. Translation: A new scientific truth does not triumph by convincing its opponents and making […]


r < g Or DEF < g ?

12 August 2011

It is frequently asserted by some economists and even some Post-Keynesians that as long as the effective interest rate paid on stocks of debt is less than the growth rate, stock-flow-norms do not keep rising forever. That is, ratios such as public debt/gdp, external debt/gdp do not rise forever at full employment if this condition is […]


The Quick Rise And Fall Of Keynesianism

4 August 2011

Welcome to my blog! This blog post is about the Great Recession, the imbalances which led to it, the use of Keynesian principles by governments of all nations to prevent a deep implosion and how and why the Keynesian mini-revolution didn’t last long. Suddenly, nobody is asking Are We Keynesians Now? and the economics profession has […]