Category: "macroeconomics"

Why Economists Fail to Make ‘Rational’ Judgments and Why You Should Too

July 21st, 2017
in history, macroeconomics

Recently Cameron Murray directed me to an interesting paper entitled Do Economists Recognize an Opportunity Cost When They See One? A Dismal Performance from the Dismal Science. more »

Trade War Games

July 20th, 2017
in history, trade data, macroeconomics

by John Mauldin, Thoughts from the Frontline “We’re already in a trade war with China. The problem is we’ve not been fighting back.”– Peter Navarro “The battle for Helm’s Deep is over. The battle for Middle Earth is about to begin.”– Gandalf the White more »

Credit Misallocation During the European Financial Crisis

There is a widespread perception that under-capitalised banks can prolong crises by misallocating credit to weaker firms and restraining credit to healthy borrowers. This column explores the extent and consequences of credit misallocation in Italy during and after the Eurozone Crisis. more »

Arguments Against Free Trade and Comparative Advantage

July 15th, 2017
in history, macroeconomics

In response to Krugman’s awful dismissal of heterodox economics the other day (see here) Ramanan has dug up an old quote reminding us that Krugman actually got his Swedish bank prize for being a defender of the status quo. In a 1996 lecture paper Krugman lays out a propaganda plan so that economists can argue in favour of free trade. more »

Prepare for Turbulence

“The job of the central bank is to worry.”– Alice Rivlin “The central bank needs to be able to make policy without short-term political concerns.”– Ben Bernanke more »

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