EconProph | I'm Jim Luke. This is my economics notebook. I teach college principles of economics, along with the occasional Economic History, Comparative Econ Systems, and Econ Geography. The posts here are mostly examples/stories for my students, notes t. An Economist Explains How Fear Drives Productivity. New Classical Macroeconomics. After Keynesian Macroeconomics The new classical macroeconomics is a school of economic thought that originated in the early 1970s in the work of economists centered at the Universities of Chicago and Minnesota—particularly, Robert Lucas (recipient of the Nobel Prize in 1995), Thomas Sargent, Neil Wallace, and Edward Prescott (corecipient of the Nobel Prize in 2004). The name draws on John Maynard Keynes’s evocative contrast between his own macroeconomics and that of his intellectual forebears.
Keynes had knowingly stretched a point by lumping his contemporaries, a. c. pigou and Alfred Marshall, in with the older classical political economists, such as David Ricardo, and calling them all “classical.” According to Keynes, the classics saw the price system in a free economy as efficiently guiding the mutual adjustment of supply and demand in all markets, including the labor market. Origins of the New Classical Macroeconomics Business Cycles Rational Expectations and Policy Ineffectiveness.
Bright Lights, Rich Cities. Fly into a city on a clear night and you’ll enjoy a jeweled panorama below. Starkly lit skyscrapers, yellow glows from the windows of scattered homes, and roads pulsing white and red as cars speed over highways and crawl along residential streets. All of this electricity usage tends to indicate that a city has money to spend. And, indeed, in a new study, economists have shown that satellite measurements of an area’s lights reveal how economically developed it is. Judging the economic status of a country like the United States is relatively easy: the relevant numbers are carefully reported and widely available, allowing anyone to easily calculate measures of economic development such as the gross domestic product (GDP).
In the hope of finding an alternative means of measuring GDP, macroeconomists Xi Chen and William Nordhaus of Yale University turned to nighttime images of the globe taken by U.S. Nordhaus agrees that one has to be cautious when using the nighttime imaging model. Hamburgers: The Economics of America’s Favorite Food.
Big Mac-ronomics: What The Price of a Big Mac Reveals About Purchasing Power Around the World at Credit Sesame Blog. The Economics Of Star Wars. The Case Against the Fed - Murray N. Rothbard. Money and Politics By far the most secret and least accountable operation of the federal government is not, as one might expect, the CIA, DIA, or some other super-secret intelligence agency. The CIA and other intelligence operations are under control of the Congress. They are accountable: a Congressional committee supervises these operations, controls their budgets, and is informed of their covert activities.
It is true that the committee hearings and activities are closed to the public; but at least the people's representatives in Congress insure some accountability for these secret agencies. It is little known, however, that there is a federal agency that tops the others in secrecy by a country mile. The Federal Reserve System is accountable to no one; it has no budget; it is subject to no audit; and no Congressional committee knows of, or can truly supervise, its operations. It was to be expected that Fed Chairman Alan Greenspan would strongly resist any such proposals. 1. Federal Reserve (The Fed)
FDIC Reserve Ratio Plummets. Producer Price Index (PPI)