Blowing Up the New Keynesian Model
Demolition Explosion! Photo Credit: U.S. Department of Energy I am beginning to see suggestions that it is time to blow up New Keynesian economics to smithereens … Read More
Tag: Keynesian
Anything involving Keynesian economic ideas
The Solow-Swan Model and Where We Are Economically (3)
In this post we will permit more dynamic economic change in the Solow-Swan model than we did in the previous two posts. This is accomplished by allowing the curves describing … Read More
The Solow-Swan Model and Where We Are Economically (2)
Photovoltaic Production Line Photo Credit: canstockphoto.com/06photo In our last post we sketched out the Solow-Swan model of economic growth that created an economic picture of per … Read More
The Solow-Swan Model and Where We Are Economically (1)
They don’t pay me enough! Photo Credit: Flickr.com/Bitterjug OK, everyone! Put on your thinking caps because we are going to be doing some serious macroeconomics thinking. … Read More
Quantitative Easing and Its Effects
Federal Reserve Building, Washington DC Photo Credit: Flickr.com/wwarby Despite its impact on our economic well-being, few people seem to know much about Quantitative Easing (QE). QE was a … Read More
Bending History
We may be approaching in economics what Thomas Kuhn in his seminal book, The Structure of Scientific Revolutions (reference [S2]), called a paradigm shift. Kuhn laid out scientific history in … Read More
Current Economic Effects of the Federal Reserve
Having given the institutional composition and powers of the Federal Reserve, and having given our opinion on what it should be doing and why, we will now look at what it … Read More
The Evolution of Modern Economic Theory
In order to understand why the Federal Reserve has chosen its policies of the past three decades, we need to understand the New Keynesians. The response by neoclassical economists to the … Read More
The Federal Reserve and Monetarism
Once the basic institutional facts about the Federal Reserve System have been presented, any discussion of the Fed should begin with a discussion of monetarism. After all, the Fed’s primary … Read More
Echoes of the Great Depression: Europe
For all of my life the nations of Europe have been very much to the left of center. I suppose this condition is the legacy of dirigisme and socialism in France, Bismarck’s … Read More
The Keynesian- Neoclassical Ideological Conflict (2)
When we left this discussion, we had found that a Keynesian economist believes government stimulus spending must be used to kick-start (pump-prime?) the economy out of recession.
Neoclassical economists on the other hand believe care must be taken not to damage an already distressed economy further.
The Keynesian- Neoclassical Ideological Conflict (1)
Quite possibly the most consequential ideological conflict within Western nations today is the battle of economic ideas between Keynesian and neoclassical thought. Since Keynesian ideas mandate greater power and a larger … Read More
Secular Stagnation
It seems that some Keynesians, worried by the slow economic growth since we emerged from the “Great Recession” in 2009, are dusting off the old Keynesian idea of “secular stagnation.” Larry … Read More
The Lessons of Europe and Wishful Thinking
The Editor-in-Chief of Forbes Media, Steve Forbes, has just indulged in some wishful thinking, which I share. The main story in the cited post is that Great Britain and mainland … Read More
How Seriously Can We Take Economics As A Science?
Since we are going to be writing a lot about economics in this blog, we should spend some time figuring out how seriously we should take it as an authority … Read More