Wednesday, March 4, 2015
Wednesday, February 25, 2015
Now that the situation in Greece has calmed down somewhat, we can turn our attention back to the sluggish United States economy. I am not going to attempt to parse Fed Chair Yellen's comments, but I would tend to discount the details. My view is that the Fed is analytically rudderless, and they are in the unenviable situation of making policy up as they go along. There are a number of cliffs over which the U.S. economy can tumble, but the base case remains that the Fed may begin to hike rates at some point in 2015. The question is how many rate hikes will occur before the next set of emergency rate cuts will be required.
Sunday, February 22, 2015
Friday, February 20, 2015
Sam and Janet go to College, by Professor Roger Farmer. The original impetus for that article was to respond to comments I made earlier. I have looked at the papers he suggested, and I am still circling back to roughly where I was earlier with regards to overlapping generations (OLG) models. I still have not found any OLG models which meet my fairly strong criteria for what constitutes a useful economic model for analysing fiscal policy. I explain those criteria here, as I did not want to spam his website with a 1000 word comment. Since the literature is huge, and I do not have access to an academic library, that does not mean such models do not exist. I am simply unaware of them. But they are certainly well hidden from the public domain. Moreover, I have my doubts about the analytical tractability of such models.
Tuesday, February 17, 2015
Sunday, February 15, 2015
Post-Keynesian Economics: New Foundations by Marc Lavoie is a masterful overview of post-Keynesian economic thought. It is an academic text, and it is aimed at readers with a good understanding of economics already under their belt. Within the text, he draws upon the different schools of thought that comprise post-Keynesian economics, and shows that they provide a coherent understanding of macroeconomics.It is an excellent resource for those who aim to have a detailed understanding of economic thought.
Friday, February 13, 2015
previous article, I realise that it is possibly unclear what the "debt burden" debate is about. I provided links, but my feeling is that the linked articles are probably more complex than necessary. In this article, I provide a quick primer on the debate, without attempting to answer which side is right.