Category Archives: Macroeconomics

MACROECONOMICS PROFESSION CONCEDES TO WILLIAM WHITE

Joseph Stiglitz: The most remarkable aspect of the recent conference at the IMF was the broad consensus that the macroeconomic models that had been relied upon in the past and had informed major aspects of monetary and macro-policy had failed. … Continue reading

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IN THE MAIL: Monetary Policy, Inflation, and the Business Cycle by Jordi Gali

Jordi Gali’s Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework is self-recommending for the clarity of its writing, the coherence of its organization, and the usefulness of the references to the literature.

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“NEVERMIND” — OLIVIER BLANCHARD ON THE MACROECONOMICS HE’S PUSHED FOR DECADES

Here and here. Michael Woodford seems to be sitting in the same boat.

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OPEN SYSTEM ECONOMICS VS CLOSED MATH CONSTRUCT ECONOMICS

Or, adaptive Hayekian judgment vs rational expectations — Axel Leijonhufvud knocks macroeconomic heads with some obvious facts about the difference between the real world and the math constructs fashionable among the professorial elite — under the (false?) assumption that macroeconomists … Continue reading

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FALKENSTEIN ON MACROECONOMICS & THE GENIUSES AT MIT

Here. Hayek’s early work on business cycles focused on misalignments in the structure of production. Alas, this was basically impossible to formalize. Keyenes’s model, meanwhile, was adopted into the Hansen-Hicks synthesis that looked a lot like the simple Supply/Demand equations … Continue reading

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Classic Hayek as the New Macroeconomics

On the front page of the Wall Street Journal. And Hayek also turns up again on the WSJ Op-Ed page.

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