Did Samuelson and Solow Really Claim that the Phillips Curve was a Structural Relationship?
Like Robert Waldmann, I have always taught that the Phillips curve was initially promoted as a permanent tradeoff between inflation and unemployment. It was thought to be a menu of choices that allowed most any unemployment rate to be achieved...
"The Austrian Analysis of the Great Depression and the Recent Recession are Wrong"
Bruce Bartlett: What Rule Should the Fed Follow?, by Bruce Bartlett, Commentary, NY Times: ...[T]he “Austrian” theory of the Great Depression ... says that even though there was no inflation during the 1920s, somehow or other inflation nevertheless caused the...
"From Financial Crisis to Stagnation"
The heterodox view: From Financial Crisis to Stagnation: The Destruction of Shared Prosperity and the Role of Economics, by Thomas Palley: Many countries are now debating the causes of the global economic crisis and what should be done. That debate...
More INET Videos: Sessions on Complexity and Fiscal Policy
These videos are from the recent INET conference in Berlin: Taking Stock of Complexity Economics: Which Problems Does It Illuminate? Moderator Thomas Homer-Dixon, Director, Waterloo Institute for Complexity and Innovation, University of Waterloo [On Farmer Video] Speakers Doyne Farmer, Professor...
"A Case for Balanced-Budget Stimulus"
People often object to the idea of a multiplier because it comes from the old Keynesian model. Real macroeconomists, we are told, use DSGE models. But using a DSGE model doesn't matter, the result is essentially the same: A case...
"Forecasting the Great Recession: DSGE vs. Blue Chip"
There was more interest in the post on the forecasting ability of DSGE models than I expected, so let me follow up with a post that comes from the NY Fed's Liberty Street Economics blog (this is relatively technical material)....
"Forecasting the Great Recession: DSGE vs. Blue Chip"
There was more interest in the post on the forecasting ability of DSGE models than I expected, so let me follow up with a post that comes from the NY Fed's Liberty Street Economics blog (this is relatively technical material)....
Is INET Evolving?
During last years' INET conference at Bretton Woods I wrote: Re-Kindleberger: I've learned that new economic thinking means reading old books. Okay, that's not quite fair, but one of the themes of the Institute for New Economic Thinking conference I'm...
The Forecasting Ability of Modern Macroeconomic Models
I think this mischaracterizes Paul Krugman's view, though he can certainly speak for himself. But the rest is interesting: Volker Wieland and Mail Wolters on the forecasting ability of modern macroeconomic models (this one should have a warning that it...
New Classical, New Keynesian, and Real Business Cycle Models
[This is an edited version of something I've posted here in the past. I'm hoping others will be motivated to add to (or correct) this history.] The term "New Classical economics" is often used as though it is one of...
Classes of Macro Models: What Counts as a DSGE Model?
In a tweet yesterday, one that Steve Keen posts here, I say (after noting that New Keynesian models are DSGE): ...RBC models can surely be categorized as DSGE Keen then says: Thoma believe[s] that DSGE models exclusively refer to NK...
Real-Time Economic Analysis
When Narayana Kocherlakota gave this speech based on this paper, a paper that uses a very simply model that is essentially an IS curve analysis, the economists who believe strongly in the science of monetary policy were appalled. How could...
