tag:blogger.com,1999:blog-5908830827135060852.post6669202862357094698..comments2024-03-01T02:40:14.946-05:00Comments on Bond Economics: What Can Neoclassical Theory Tell Us About Recessions (Serious Question)?Brian Romanchukhttp://www.blogger.com/profile/02699198289421951151noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5908830827135060852.post-71190265676966094922019-12-10T00:00:41.865-05:002019-12-10T00:00:41.865-05:00This comment has been removed by a blog administrator.Jackesmithhttps://www.blogger.com/profile/00453535698373594134noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-21112615029780361682019-11-21T10:00:31.438-05:002019-11-21T10:00:31.438-05:00Well, neoclassical theory is good at predicting th...Well, neoclassical theory is good at predicting that workers desire more leisure when recessions begin. I'm not sure PK theory provides such insight. How about Ricardian Equivalency- is post Keynesian analysis capable of showing how government spending is not stimulatory? Seems like neoclassical theory might be useful there- if you believed any of that crap.<br /><br />Jerry Brownnoreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-85793466540889141392019-11-21T09:32:31.305-05:002019-11-21T09:32:31.305-05:00There’s thousands of DSGE models. Some of them hav...There’s thousands of DSGE models. Some of them have various mechanisms to allow for something like a recession. My question is: do any of these mechanisms offer anything that is not already available from PK theory? Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-37579892524825772122019-11-20T23:44:21.204-05:002019-11-20T23:44:21.204-05:00Pure neoclassical theory assumes away recessions. ...Pure neoclassical theory assumes away recessions. <br /><br />It assumes there is only one viable (optimal) level of output and that is the one at full employment.<br /><br />Don't the DGSE modellers rely on frictions and the like to account for some form of unemployment.<br /><br />Isn't it that simple? I must be missing something?<br /><br />Henry RechAnonymousnoreply@blogger.com