Monthly Archives: March 2011

ARTICLE: OVERINVESTMENT & THE VICIOUS CYCLE OF MANIAS & CRISES

“A Vicious Cycle of Manias, Crises and Asymmetric Policy Responses:  An Overinvestment View” by Andreas Hoffmann & Gunther Schnabi.  Abstract: Over the past three decades, we find that asymmetric policy responses heavily contributed to manias and bursting bubbles that eventually … Continue reading

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HAYEKIAN REALITIES BRING ‘NORMAL SCIENCE’ TO AN END IN MACROECONOMICS

A long period of Kuhnian “normal science” is over in macroeconomics, banking, and finance — the news comes directly from the top guns in science (see also here, here, here, and here.)   What killed it? A series of empirical … Continue reading

Posted in Macroeconometrics | Tagged | 2 Comments

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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THE BRILLIANT WALTER WILLIAMS

You can buy his new autobiography here. I’ll think I’ll get a copy — and share it with my son.

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LARRY SUMMERS ON THE SIGNIFICANCE OF HAYEK

Larry Summers: Hayek’s ideas that the price system is a consolidator of information and a distributor of knowledge, as well as simply a way of assuring efficiency and exchange, is probably as penetrating and original an idea as microeconomics produced … Continue reading

Posted in Division of Knowledge | 3 Comments

HAYEK’S MACRO IS THE BEST EXPLANATION — BRAD DELONG

It would be very hard to explain the current recession using Hayek’s macroeconomics in fewer words than has been achieved by Hayekian macroeconomist Brad DeLong: After the most recent downturn, however .. things have been different. The downturn was not … Continue reading

Posted in Boom & Bust, Brad DeLong | 4 Comments