April 27th, 2015
by John Slater
(Originally Published on Axial Forum)
The answer may surprise you, but first a bit of background. There have been signs of financial bubbles throughout global markets: US price/earnings multiples are relatively high, the Chinese equity market is on a tear notwithstanding signs of an economic slowdown, M&A valuations remain near record levels and so on. But, that’s not the whole story.
Fixing the Economists Article of the Fortnight
by Philip Pilkington, Fixing The Economists
I just want to make a quick note on the multiplier and the theory of liquidity preference that is not generally recognised. When the full implications of this argument are recognised and integrated with marginalist theories of savings and investment (including the Austrian theory) these theories basically fall apart unless some very restrictive assumptions are put in place.
April 26th, 2015
in aa syndication
Written by Steven Hansen
I am appalled what passes for economic "fact" or "proven" economic theory. Scientific methods require:
- changing only one factor (variable) and keep all other conditions the same (carefully controlled conditions);
- gathering detailed empirical data; and,
- being able to replicate.
by Yunus Aksoy, Henrique Basso, Tobias Grasl and Ron Smith
Appeared previously at VoxEU, 08 April 2015
The disappointing recovery after the crisis has sparked renewed interest in the medium-run outlook of advanced economies. Lower population growth and its impact on labour supply gained widespread prominence.