Category Archives: Macroeconomics

A Grad Student Weighs in on Contemporary Grad School Macro

Graduate student Noah Smith reports on the state of graduate education in macroeconomics — here’s the part I found most interesting (but read the whole thing): .. as someone who never studied econ as an undergrad (I was a physics … Continue reading

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Frydman & Goldberg on Robert Lucas & F. A. Hayek

From Roman Frydman and Michael Goldberg’s new book Beyond Rational Markets: Asset Price Swings, Risk, and the Role of the State: The problem that haunts the Rational Expectations Hypothesis is the same one that doomed socialist planning: no fully predetermined … Continue reading

Posted in 1945, Frydman, Knowledge Problem, Limits to Knowledge, Lucas, Macroeconomics, Rational Expectations | Comments Off

TRANSCRIPT: Larry Summers on Scientism, Mathematical Tractability & the Cognitive Failure of Modern Macroeconomics

Larry Summers at Bretton Woods on what was driving the macroeconomics which Summers sees as completely unhelpful in the current crisis: “[The sociology of the macroeconomic profession of the last 30 years was marked by] attempts at “science” and by … Continue reading

Posted in Macroeconomics, tractability | 1 Comment

VIDEO: Larry Summers with Martin Wolf at Bretton Woods — Hayek Resembles that Remark

Larry Summers’ remarks at Bretton Woods on liquidity and asset markets, his remarks on tractability in economics, economic education, and the advance of science, etc. are very Hayekian in flavor — for all of Summer’s vulgar Keynesian political economy and … Continue reading

Posted in Larry Summers, Macroeconomics | 1 Comment

Michael Spence on Where Macroeconomics Goes From Here

Here. I’m a bit worried, however, Michael Spence has not gotten the memo — i.e. he seems yet to internalize the seminally consequential scientific insight recently re-advertised by David Laidler that “a monetary economy has .. properties that cannot be … Continue reading

Posted in Macroeconomics, math econ | 1 Comment

Quote of the Day – Laidler on Monetary Economics & Equilibrium Modeling

David Laidler: a monetary economy has long been understood by those who have studied it to have properties that cannot be analyzed using the tools of Arrow-Debreu style equilibrium modeling I’ve laid out the “Hayek-Mises” considerations which establish this fact … Continue reading

Posted in Macroeconomics | 6 Comments