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Keynesian Economics

A Martini or Two to Economic History!

Paul A. London | Posted 05.27.2016 | Business
Paul A. London

The wonderful Australian-born economist, Arthur Smithies, became a warm friend of mine one summer long ago in Saigon. I drank beer, he drank martinis....

Which Way Wednesday - Hilsenrath Loses His Touch

Phil Davis | Posted 03.10.2017 | Business
Phil Davis

Fool me once, shame on you. Fool us every time there's a Fed meeting - then we're just idiots who will believe anything just because it's printed ...

Senator Ted Cruz Really Wants to Return to the Gold Standard... Has He Heard of the Great Depression?

Marvin Meadors | Posted 10.30.2016 | Politics
Marvin Meadors

Radical conservatives, such as Cruz, and libertarians believe gold to be a hedge against inflation. It is curious to be concerned about inflation at a time when it is at historic lows and short-term interests rates are at zero, making borrowing money just about free.

Fed Angst and the Interest Rate Tragedy

Robert Hardaway | Posted 07.28.2016 | Business
Robert Hardaway

As traders and investors around the world try to decipher the Federal Reserve's use of such terms as "not impatient" in lieu of "patient" in its guidance on interest rates, it is fast becoming clear that the Fed realizes that it has been painted into a corner.

Message to Merkel: Think Outside the Box

Oliver R. Goodenough | Posted 07.08.2016 | Politics
Oliver R. Goodenough

The Greek debt crisis is a collision of two seemingly incompatible necessities. One is to put the Greek economy into a position for long term health; the other is to keep it from expiring in the short term. If these are to be reconciled, the players in Europe need to think outside the box, rather than retreat into bluster, blame, and the repetition of old positions.

George Will's 'Firing Offense' at Fox

Paul Abrams | Posted 06.06.2015 | Media
Paul Abrams

On rare occasions when professional right-wingers let down their ideological guards, however, they can slip into revealing the truth. But, George Will has sinned on that most sacred of right-wing catechisms, government spending. From that, there can be no reprieve.

Why We Need a New Macroeconomics

Jeffrey Sachs | Posted 01.23.2014 | Politics
Jeffrey Sachs

Many progressives will no doubt say that I'm being unfair to the Keynesians, and that they too would favor an investment strategy if the Republicans didn't block them. I hope that's true. Yet Keynesian stimulus repeatedly takes our eyes off the long term.

Economist Robert Shiller's Nobel Prize a Big Win

Harlan Green | Posted 12.14.2013 | Business
Harlan Green

Although much of what Yale economist Robert Shiller writes is about the importance of financial markets, he won the Nobel Prize in Economic Sciences for studying how financial markets misbehave. He is a pioneer in the new field of Behavioral Economics.

Ask a Keynesian: With U.S. Borrowing Capped, Won't More Pentagon Spending Destroy Jobs?

Robert Naiman | Posted 01.23.2014 | Politics
Robert Naiman

The Grand Bargain is essentially about taking money from middle income people through Social Security cuts and tax increases and giving the money to the Pentagon for unnecessary Pentagon spending.

Who Knew? On the Recovery Act, Keynes Had It Right All Along

Jared Bernstein | Posted 10.19.2013 | Business
Jared Bernstein

When the stimulus was kicking in, adding significant demand to the economy, real GDP and job growth quickly turned less negative, with GDP turning positive later in 2009, and job growth beginning in early 2010. Moreover, as the stimulus flattened, so did they.

What 'The Third Metric' Has in Common with Neoclassicism

Babatunde Valentine Onabajo | Posted 08.05.2013 | Business
Babatunde Valentine Onabajo

Is continually acquiescing power conducive to human flourishing? St. Thomas Aquinas certainly disagreed.

New Deal Denier Amity Shlaes: "1920s Income Inequality Didn't Hurt Middle-Class"

Ian Reifowitz | Posted 06.03.2013 | Politics
Ian Reifowitz

Having ten years to fully implement their vision, these Republicans did great for middle-class Americans, right? Again, only if we pretend that history ended in October 1929.

Mark Gongloff

Discredited Economist Blasts Back | Mark Gongloff | Posted 05.23.2013 | Business

Kenneth Rogoff is mad as hell, and he's not going to take it any more. The Harvard economist has taken a beating since the discovery that much of h...

Government Failure vs. Market Failure

Jared Bernstein | Posted 07.21.2013 | Business
Jared Bernstein

One common argument is that while Keynesians rightly call for temporary deficit spending to offset private sector contractions, politicians ignore the temporary part.

Hello Republicans: Japan Switches to Stimulus, Gets Growth; Europe Sticks With Austerity, Stays in Recession

Ian Reifowitz | Posted 07.20.2013 | Politics
Ian Reifowitz

As Europe reminds us, it prevents recession-battered economies from growing. The alternative is to prime the economic pump by having governments engage in fiscal and monetary stimulus.

Think Again: Niall Ferguson's Gay Theory for the World's Economic Problems Is Nothing If Not Novel

Eric Alterman | Posted 07.09.2013 | Media
Eric Alterman

Perhaps the best reason to doubt the sincerity of Ferguson's retraction, however, is his complete lack of any compelling explanation of why he would wish to say such a thing in the first place.

Austerity on the Ropes: How Krugman Is Winning the Battle and Obama Is Losing the War

Richard Brodsky | Posted 07.07.2013 | Politics
Richard Brodsky

In comes Paul Krugman of the New York Times. Almost single-handedly he has made the case for stimulus and investment, and disemboweled the idea that spending cuts will get us out of this long, slow glide to economic oblivion.

Austerity in De-Niall

Richard (RJ) Eskow | Posted 07.06.2013 | Politics
Richard (RJ) Eskow

As the austerity's intellectual claims are discredited, its advocates are confronted with a choice: Face their own errors, correct them, and participate in honest discourse. Or cover up, obfuscate, and (in Niall Ferguson's case) turn mean and desperate.

Ryan's Big Screw

Shan Wells | Posted 05.14.2013 | Denver
Shan Wells


Jason Linkins

Paul Ryan Will Battle Paul Krugman To The Death To Defeat 'Keynesian Economics' | Jason Linkins | Posted 03.13.2013 | Politics

Wisconsin representative and former GOP vice-presidential candidate Paul Ryan put new gloss on his old budget and has been schlepping it around and ab...

Joseph Stiglitz Is Right About Inequality, but for the Wrong Reason

Mary Manning Cleveland | Posted 05.04.2013 | Business
Mary Manning Cleveland

It is not the loss of middle class spending that holds back the economy; it is the loss of middle class investment.

Sequester Cuts Good For The Economy?

Eric Zuesse | Posted 04.28.2013 | Politics
Eric Zuesse

Republicans in Congress have decided to reject economists, the Congressional Research Service, and the International Monetary Fund, in order to argue ...

Eric Cantor's Ancient Endeavor

Paul A. London | Posted 04.09.2013 | Politics
Paul A. London

Steering the Republican Party away from its accustomed negativism is an ancient endeavor. Henry Simons, a founder of the ardently free enterprise Chicago School, tried unsuccessfully to do so in the 1930s.

Is Paul Krugman's Liquidity Trap Really an Inequality Trap?

Mary Manning Cleveland | Posted 03.18.2013 | Business
Mary Manning Cleveland

Krugman cares deeply about unemployment and inequality, as did John Maynard Keynes before him. Yet like Keynes, Krugman seems caught in the inequality-free neoclassical paradigm.

Keynes, Hayek and the Eternal Truths

Robert Teitelman | Posted 02.13.2013 | Business
Robert Teitelman

Over the past year, we've seen a lot of commentary about John Maynard Keynes, Friedrich Hayek, their relationship, their debates, their various ideas ...