How neoclassical are New Keynesian dynamic stochastic general equilibrium models?
01 Jul 2019 Leave a comment
in business cycles, history of economic thought, macroeconomics
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 Midrigan, and Elena Pastorino. 2018. “Evolution of Modern Business Cycle Models: Accounting for the Great Recession.” Journal of Economic Perspectives, 32 (3): 141-66.
“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 with a list from Deirdre McCloskey on what is yet to be shored up
01 Jul 2019 Leave a comment
in history of economic thought Tags: market failure
Thomas J. Sargent – Keynote Address on effects of open borders
30 Jun 2019 Leave a comment
in applied price theory, applied welfare economics, comparative institutional analysis, development economics, economic history, history of economic thought, industrial organisation, international economics, macroeconomics Tags: free trade
Sargent on history as written by the late switchers, saying I thought of that too; said so in a footnote, in a seminar or as an aside. But Sargent was at Berkeley, knowing who is against everything he, Lucas and others said
23 Jun 2019 Leave a comment
in business cycles, fiscal policy, history of economic thought, macroeconomics, monetarism, monetary economics
From http://www.tomsargent.com/research/romers3.pdf Reactions to the Berkeley story Thomas J. Sargent October 21, 2002
Steven N.S. Cheung on comparative institutional analysis
21 Jun 2019 Leave a comment
in applied price theory, applied welfare economics, comparative institutional analysis, economics of information, economics of regulation, history of economic thought, industrial organisation, law and economics, property rights Tags: government failure, market failure, transaction costs
Why Do We Use Money?
19 Jun 2019 Leave a comment
in applied price theory, comparative institutional analysis, economic history, economics of regulation, history of economic thought, law and economics, macroeconomics, Milton Friedman, monetary economics, property rights
Peter Boettke – The Continuing Relevance of F.A. Hayek
18 Jun 2019 Leave a comment
in Austrian economics, F.A. Hayek, history of economic thought Tags: Peter Boettke
A Conversation with James M. Buchanan (1/2)
17 Jun 2019 Leave a comment
in applied price theory, comparative institutional analysis, constitutional political economy, economic history, history of economic thought, James Buchanan, Public Choice
What If There Were No Prices? The Railroad Thought Experiment
17 Jun 2019 Leave a comment
in applied price theory, comparative institutional analysis, economic history, history of economic thought, industrial organisation, Marxist economics, property rights, Public Choice
Friedrich Hayek and James Buchanan: Pattern Prediction and Scientism
16 Jun 2019 Leave a comment
in Armen Alchian, Austrian economics, F.A. Hayek, history of economic thought Tags: philosophy of science
Milton Friedman Interview with Gary Becker (2003)
16 Jun 2019 Leave a comment
in applied price theory, comparative institutional analysis, development economics, economic history, economics of education, economics of information, economics of regulation, Gary Becker, history of economic thought, industrial organisation, labour economics, law and economics, macroeconomics, Milton Friedman
Friedman on Becker
15 Jun 2019 Leave a comment
in Gary Becker, history of economic thought, Milton Friedman
From James Heckman’s notes on Becker
James Buchanan on Chicago School Thinking: Old and New
14 Jun 2019 Leave a comment
in business cycles, comparative institutional analysis, economic growth, economics of information, global financial crisis (GFC), great depression, great recession, history of economic thought, macroeconomics, monetary economics
Utopia, you are standing in it! 
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