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Tag Archives: macroeconomics
The Failure of Neoliberalism
The Failure of Neoliberalism Backing Up Macro Alf, & Showcasing Ravel, in 11 plots and two averages The macro commentator Alfonso Peccatiello, who writes as @MacroAlf on Twitter/X and publishes the Macro Compass newsletter, recently posted an excellent thread on private debt that cited my work: Let me show you one of the most underrated and yet crucial […]
Macroeconomics Has Lost Its Way
MACROECONOMICS HAS LOST ITS WAY The father of modern macroeconomics was Keynes. Before Keynes there were macro considerations, which were firmly grounded in human action, the personal preferences and choices exercised by individuals in the context of their own earnings and profits. In order to give a role to the state, Keynes had to get […]
Macroeconomics Has Lost Its Way
Macroeconomics Has Lost Its Way The father of modern macroeconomics was Keynes. Before Keynes there were macro considerations, which were firmly grounded in human action, the personal preferences and choices exercised by individuals in the context of their own earnings and profits. In order to give a role to the state, Keynes had to get […]
Why Mainstream Economics Consistently Fails to Explain the Occurrence of Recessions?
WHY MAINSTREAM ECONOMICS CONSISTENTLY FAILS TO EXPLAIN THE OCCURRENCE OF RECESSIONS? In his article released on March 21 2018 – Economics failed us before the global crisis – Martin Wolf the economics editor of The Financial Times expressed some misgivings about macroeconomics. Economics is, like medicine (and unlike, say, cosmology), a practical discipline. Its goal […]
What is Optimal Monetary Policy, Anyway?
WHAT IS OPTIMAL MONETARY POLICY, ANYWAY? Ever since the important contributions of new classical economists Finn E. Kydland and Edward C. Prescott during the 1970s and 80s, modern macroeconomics seeks optimal rules for monetary policy. Indeed, Milton Friedman had previously emphasized the importance of a binding rule for monetary policy. He recommended a constant but […]
Caution: Slowdown
Caution: Slowdown Many of you know I keep posting charts keeping taps on the macro picture in the Macro Corner. It’s actually an interesting exercise watching what they do versus what they say. Public narratives versus reality on the ground. I know there’s a lot of talk of global synchronized expansion. I call synchronized bullshit. […]
The $200 Trillion Question
The $200 Trillion Question Perhaps the most remarkable trend in global macroeconomics over the past two decades has been the stunning drop in the volatility of economic growth. In the United States, for example, quarterly output volatility has fallen by more than half since the mid-1980’s. Obviously, moderation in output movements did not occur everywhere […]
The most important and misleading assumption in the world
THE MOST IMPORTANT AND MISLEADING ASSUMPTION IN THE WORLD Editor’s note: This is the second of a two-part series by the author. Part one: “Macro and climate economics: It’s time to talk about the ‘elephant in the room’.“ Part one of this blog post explained how macroeconomic models are flawed in a fundamental way. These models are […]
Macro and Climate Economics: It’s Time to Talk About the ‘Elephant in the Room’
MACRO AND CLIMATE ECONOMICS: IT’S TIME TO TALK ABOUT THE “ELEPHANT IN THE ROOM” Editor’s note: This is the first of a two-part series by the author. Up next: “The most important and misleading assumption in the world.“ If we want to maximize our ability to achieve future energy, climate, and economic goals, we must start to […]
There’s Trouble Brewing In Middle Earth
There’s Trouble Brewing In Middle Earth For the second time in three years, I’m fortunate enough to spend some time in New Zealand (or Aotearoa). In 2012, it was all mostly a pretty crazy touring schedule, but this time is a bit quieter. Still get to meet tons of people though, in between the relentless […]
