Category: "macroeconomics"

Interest Rates and ‘Reserve Constraints’: Why Endogenous Money Works Without Central Bank Intervention

November 21st, 2017
in macroeconomics

Endogenous money advocates often think that a central bank is required in order to offset increases in government borrowing. The story goes: the central bank targets the overnight interest rate by buying up government securities more »

Bonfire of the Absurdities

November 21st, 2017
in macroeconomics

“Vanity of vanities, saith the Preacher, vanity of vanities; all is vanity.” – Ecclesiastes 1:2, King James Version (attributed to King Solomon in his old age) more »

‘Uncertainty’ in Contemporary DSGE Modelling: Not Even Wrong

November 17th, 2017
in history, macroeconomics

Confusion of thought and feeling leads to confusion of speech. — John Maynard Keynes more »

The Distribution of Pain

November 14th, 2017
in macroeconomics

When you write about economics, you learn very quickly that the economy doesn’t care what you say about it. The forces that drive it are beyond any one person’s comprehension, much less control. more »

Is the Keynes Investment Multiplier Actually a Divider?

November 4th, 2017
in aa syndication, history, macroeconomics

British economist John Maynard Keynes transferred Richard Kahn’s employment multiplier into the concept of an investment multiplier. Others used the same formula to arrive at a Gross Domestic Product (GDP) multiplier. Portrayed by Keynesian followers as… more »




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