Wednesday, April 27, 2016
Sunday, April 24, 2016
As I noted in my discussion of Anwar Shaikh's new book Capitalism: Competition, Conflict, Crises, one of the most interesting parts of the work was his discussion of how microeconomic behaviour is reflected in aggregate performance. There are fundamental constraints upon individual behaviour that result in the same aggregate patterns at the macro level. Using the currently popular buzzword, macro behaviour is emergent, and cannot be predicted from individual behaviour with reference to the aggregate system. In my view, this is useful for macro analysts, as it means we do not waste our time obsessing about the lessons of microeconomics. For mainstream ("neoclassical") economics, this line of thinking is disastrous, as it means that entire "microfoundations project" has all the usefulness of a foundation made of sand.
Wednesday, April 20, 2016
Capitalism: Competition, Conflict, Crises is a comprehensive overview of economics published by the noted heterodox economist Anwar Shaikh. This article is technically not a review, rather a "what I am reading now" article. I have read enough of it to describe the audience for the book, but I cannot hope to summarise the contents of the work, which is just over 1000 pages.
Saturday, April 16, 2016
Olivier Blanchard eyes ugly 'end game' for Japan on debt spiral." Although the article only provides a few quotes, the logic is quite weak.
Wednesday, April 13, 2016
Sunday, April 10, 2016
How money and debt are described in simple economic models colours economists' interpretation of real world monetary systems. My feeling is that money is somewhat superfluous in these models, but it is necessary to understand why that is the case. This article explains how money and government debt (Treasury bills) operate in the second simplest Stock-Flow Consistent (SFC) model in the textbook Monetary Economics by Godley and Lavoie -- model PC (Portfolio Choice; found in chapter 4).