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Tag Archives: Macroeconomic policy

Not All Keynesian Spending Is Equal

Yves here. Richard Murphy makes an extremely important point about how Keynes’ belief in the importance of well-functioning, cohesive societies and how sound economic policy could promote them. However, he skips over the fact that Keynes did not approve of much of Keynesian thinking, particularly the American Keynesianism developed and promoted by Paul Samuelson. Samuelson had done his PhD thesis on neoclassical economics and admitted he had difficulty wrapping his mind around Keynes. An...

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Secular Stagnation: Demand Is Indeed the Culprit

Yves here. This post describes how much of the economics discipline has settled on a neat, plausible, and wrong explanation of secular stagnation. The only good news is at least pretty much no one buys Larry Summers’ theory. By Servaas Storm, Senior Lecturer of Economics, Delft University of Technology. Originally published at the Institute for New Economic Thinking website The spectre of stagnation A spectre is haunting the U.S. economy — the threat of stagnation. The anaemic recovery of the...

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STATEMENT: House Budget Committee, “Reexamining the economic costs of debt”, Nov 20, 2019

By Randy Wray. Originally published at New Economic Perspectives. By L. Randall Wray This blog is based on the testimony I provided to the US House of Representatives. My written statement will be published in the Congressional Record (a version is also at the Levy Economics Institute: http://www.levyinstitute.org/publications/statement-of-senior-scholar-l-randall-wray-to-the-house-budget-committee. The full statement was co-authored with Yeva Nersisyan. I will argue that the Federal...

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The Lords and Ladies of Discipline: An Interview with Matt Stoller

Yves here. Implicitly, in this interview, Matt Stoller is referring to the contemporary incarnation of mainstream economics, which is neoclassical economics. It is worth remembering that neoclassical economics started being formalized in the late 19th century by thinkers like Leon Walras, Carl Menger, and William Jevons. One of the reasons their ideas took hold was first, that they aspired to establish that economics was a science that could be described in mathematical terms. Second, to do...

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After the Argentina Debacle, the IMF Endorses Weakening Capital Controls in Ecuador

By Lara Merling, who works as an economics researcher at the International Trade Union Confederation. Originally published at openDemocracy ver the past year, a rebranded IMF returned to Latin America with promises of loan agreements that would be different than the dreaded “structural adjustment programmes” of the past. Behind statements about inclusive growth and protecting the most vulnerable, are policies similar to the structural adjustments of the Washington consensus era. While the...

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Sweden Retreats from Negative Interest Rate Experiment

For some time, we’ve maintained that negative interest rates would fail at achieving their intended results, which was to stimulate spending. Honestly, it beggars belief that economists could have convinced themselves of that idea. As we’ll discuss, the Swedish central bank has just thrown in the towel on them. We’ve heard for years that the Fed had privately come to the conclusion that its experiment with super low interest rates was a bust, even though it still hasn’t figured how to move...

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Bill Black: Lawrence O’Donnell Aims at Buttigieg, But Hits New Democrats

Yves here. What Black calls the New Democrats have more recently been called Blue Dogs and even (gah) frontliners, but whatever you want to call them, they are corporate stooges loyal to bad economic ideas, most notably deficit hawkery and austerity. By Bill Black, the author of The Best Way to Rob a Bank is to Own One, an associate professor of economics and law at the University of Missouri-Kansas City, and co-founder of Bank Whistleblowers United. Originally published at New Economic...

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To Resolve the Economic & Environmental Crisis, Do Not Bank On the Private Sector

More and more leaders want to tackle environmental and economic problems with a single shot. But even if you accept that challenge, how do you go about it? GPEnewsdocs has let us be the first to feature a new interview this year’s on Trade & Development Report. It puts climate change front and center by focusing on the need to consider a “global” Green New Deal. Lynn Fries interviewed UNCTAD’s Chief Economist and UNCTAD Director of Globalization & Development Strategies Richard...

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The Debt Delusion

Yves here. It is frustrating to see how often seemingly new ideas need to be repeated, like “The earth is not flat,” or “The Federal government does not need to tax or go into debt to spend” for them merely to get a hearing, let alone for their ramifications to sink in. So here is yet another go at debunking austerity mythology, via John Week’s new book, The Debt Delusion. By Richard Murphy, a chartered accountant and a political economist. He has been described by the Guardian newspaper as...

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J.D Alt: The People’s Money (Part 4)

Yves here. This post introduces the touchy topic that a Green New Deal level mobilization of resources looks like it will create more spending power than a resource-constrained planet can support. J.D. Alt leaves readers cliffhanging but promises that he’s got an answer for this “money” or more accurately, fiscal spending problem in his next post. One assumes it’s taxes but perhaps he has other wrinkles, like an emphasis on services rather than goods. By J. D. Alt, author of The Architect Who...

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