When we think about economics we tend to draw battle lines. There is “conservative” economics (generally Monetarist or classical) and “liberal” economics (generally some flavor of Keynesian economics though not [ … ]
Category: Macro Perspectives
Is Post-Keynesian Economics Catching on?
One thing that has surprised me is how little push-back there has been against mainstream economics since the financial crisis. There’s been considerable debate about the problems in mainstream macro, [ … ]
Business Cycle Theories and All That
Business cycle theory in economics is pretty complex stuff and I can’t say that it’s something I feel totally comfortable discussing because I haven’t formulated strong opinions about the specifics. [ … ]
Doubling Down on Silliness
Scott Sumner isn’t happy with me. Not surprising. I wouldn’t be happy with me either. I basically think Monetarism is filled with errors and misrepresentations of the monetary system and [ … ]
More Thoughts on “Fad Investing”
In a recent post I called factor investing “fad investing” (see here) because it is, at its core, an ex-post view of the world that implies that the markets will [ … ]
The State of Macro is Awful
In his latest piece Paul Krugman defends the state of modern macro citing how much of the modern modelling was used quite effectively by certain economists (basically, himself and a [ … ]
Nobody Needs to Understand the Liquidity Trap
Warning – This post is extremely nerdy and could result in extreme sleepiness. Do not try to read this post while operating heavy machinery.
How Close are we to a Liquidity Trap?
Back in 2008 Paul Krugman asked an important question – “how close are we to a liquidity trap”? He explained his thinking very clearly: “Here’s one way to think about [ … ]
Are We In a Permanent Liquidity Trap?
Grrrrrr. Paul Krugman is stealing my thunder on the interest rate call that wrecked PIMCO and Bill Gross. Like myself, Krugman was loudly declaring that interest rates had no reason [ … ]