Paul Romer has a followup article about "post-Real" economics. I just wanted to launch a digression around his comments about mathematicians and incorrect proofs. Although there might be some useful conclusions for academic economics, the problems faced by the field are more difficult than the issue of incorrect proofs.
Thursday, September 22, 2016
Wednesday, September 21, 2016
I returned from the University of Missouri Kansas City Post-Keynesian Conference, and I have been reflecting on the state of the field. From my external vantage point, it has the defects that are inherent in the institutions in modern academia, but it does have the advantages over the mainstream. The trick is being able to get an understanding of the theory from outside. Modern Monetary Theory (MMT) remains attractive as the project was structured in a fashion to be useful for non-academics.
Monday, September 19, 2016
The Trouble with Macroeconomics." In my view, the implications of this paper are being misunderstood. The interpretation I have seen is that a senior practitioner of mainstream macro is pointing out the deficiencies in DSGE modelling, and that this will cause some soul searching and changes of habits in the economic mainstream. However, this paper seems to be best understood as a venting of professional grievances by someone leaving academia to take a senior policy position, and there is nothing in the paper that is already obvious to any halfway competent mainstream economist.