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Tag Archives: Links

Links (11/06/19)

How and why economics forgot Keynes’ warnings on panics - FT Alphaville In a new paper (hat-tip to the University of Washington’s Fabio Ghironi for drawing our attention to it), Nobel Prize winning economist George Akerlof does a brilliant job of explaining how and why, in the decades before the financial crash, macroeconomists failed to include any meaningful role of the financial system in their economic models. The End of Neoliberalism and the Rebirth of History - Joseph E....

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Links (10/31/19)

Manufacturing Ain’t Great Again. Why? - Paul Krugman  When Donald Trump promised to Make America Great Again, his slogan meant different things to different people. For many supporters it meant restoring the political and social dominance of white people, white men in particular. For others, however, it meant restoring the kind of economy we had a generation or two ago, which offered lots of manly jobs for manly men: farmers, coal miners, manufacturing workers. So it may matter a lot,...

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Links – Catching Up (Part 2)

Democracy on a Knife-Edge - Dani Rodrik The failure to protect minority rights is a readily understood consequence of the political logic behind the emergence of democracy. What requires explanation is not the relative rarity of liberal democracy, but its existence. Economic Incentives Don’t Always Do What We Want Them To - Duflo and Banerjee On their own, markets can’t deliver outcomes that are just, acceptable — or even efficient. The Phillips curve: Dead or alive -...

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Links – Catching Up (Part 1)

No, We Don’t “Need” a Recession - J. Bradford DeLong I recently received an email from my friend Mark Thoma of the University of Oregon, asking if I had noticed an increase in commentaries suggesting that a recession would be a good and healthy purge for the economy (or something along those lines). In fact, I, too, have noticed more commentators expressing the view that “recessions, painful as they are, are a necessary growth input.” I am rather surprised by it. ... Economics’ Lack...

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Links (9/25/19)

The Cost of America’s Oligopoly Problem - ProMarket An innovative new study finds substantial, increasing deadweight losses resulting from oligopolistic behavior and points to the important role that startup acquisitions—particularly by large tech firms—played in driving this trend. Helicopter money as a policy option - VoxEU With persistently weak economic conditions becoming the norm in Europe, economists are considering increasingly unconventional policy options. One tool...

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Links (9/13/19)

How we make decisions depends on how uncertain we are - EurekAlert!A new Dartmouth study on how we use reward information for making choices shows how humans and monkeys adopt their decision-making strategies depending on the uncertainty of information present. The results of this study illustrated that for a simple gamble to obtain a reward, when the magnitude or amount of the reward is known but the probability of the reward is unknown and must be learned, both species will switch their...

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Links (8/23/19)

I have been traveling and got a bit distracted by shiny objects. Here are a few links (in no particular order): Whither Central Banking? - Lawrence H. Summers & Anna StansburyIn an environment of secular stagnation in the developed economies, central bankers’ ingenuity in loosening monetary policy is exactly what is not needed. What is needed are admissions of impotence, in order to spur efforts by governments to promote demand through fiscal policies and other means. From Voodoo...

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Links (8/08/19)

Irving Fisher Demolishes the Loanable-Funds Theory of Interest - Uneasy MoneyIn some recent posts (here, here and here) I have discussed the inappropriate application of partial-equilibrium analysis (aka supply-demand analysis) when the conditions under which the ceteris paribus assumption underlying partial-equilibrium analysis are not satisfied. The two examples of inappropriate application of partial equilibrium analysis I have mentioned were: 1) drawing a supply curve of labor and...

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Links (7/22/19)

Why Critics of a More Relaxed Attitude on Public Debt Are Wrong - Blanchard and UbideBoth of us have recently developed arguments for a more relaxed attitude toward public debt and deficits (for example, this address by Blanchard at the European Central Bank Policy Forum, this joint discussion at PIIE, and this essay by Ubide on Vox). Not surprisingly, several counterarguments have arisen, some of which we accept, some of which we don’t. This blog addresses two arguments that we reject....

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Links (7/15/19)

Why Is Inflation Low Globally? - FRBSF A hot economy eventually boosts inflation. Such is the simple wisdom of the Phillips curve. Yet inflation across developed countries has been remarkably weak since the 2008 global financial crisis, even though unemployment rates are near historical lows. What is behind this recent disconnect between inflation and unemployment? Contrasting the experiences of developed and developing economies before and after the financial crisis shows that...

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