Utopia, you are standing in it!

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

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In sum, New Keynesian models are most certainly not reincarnations of textbook IS–LM models with maximization added on. Rather, they are real business cycle models augmented with a few distortions—typically sticky prices and monopoly power—and shocks that do little to contribute to fluctuations or influence the nature of optimal policy From Kehoe, Patrick J., Virgiliu …

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From https://krugman.blogs.nytimes.com/2012/04/02/oh-my-steve-keen-edition/ and see https://creditwritedowns.com/2012/04/banks-matter-krugmans-barter-mysticism.html for the text of broken link Why am I reminded of Neoclassical Economics? Let me count the ways… Firstly, there are similar underlying principles to the DSGE models that now dominate Neoclassical macroeconomics, and as with Ptolemaic Astronomy, these underlying principles clearly fail to describe the real world. They are: …

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"Mainstream economists reach mathematical conclusions about their model of the economy that they don’t like…and are then willing to make patently absurd assumptions to rescue their desired equilibrium conclusion."– @ProfSteveKeen https://t.co/zHdwGCeMA9 pic.twitter.com/lfkBg2wWOH — Evonomics (@EvonomicsMag) June 30, 2019

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Originally posted on Why Evolution Is True:
A reader sent me a link to an article from The Australian which, sadly, is behind a paywall (click on screenshot to see). It is the very height of shameless pandering to ethnic groups who accept false stories about their history, and it’s also the nadir of academic…

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Celebrating humanity's flourishing through the spread of capitalism and the rule of law

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