background preloader

Heterodox economics: Marginal revolutionaries

Heterodox economics: Marginal revolutionaries

Modern Money Mechanics | MMT simplified. Second Bill of Rights The Second Bill of Rights was a list of rights proposed by Franklin D. Roosevelt during his State of the Union Address on January 11, 1944.[1] In his address Roosevelt suggested that the nation had come to recognize, and should now implement, a second "bill of rights". Roosevelt's argument was that the "political rights" guaranteed by the constitution and the Bill of Rights had "proved inadequate to assure us equality in the pursuit of happiness." Roosevelt's remedy was to declare an "economic bill of rights" which would guarantee eight specific rights: Roosevelt stated that having these rights would guarantee American security, and that America's place in the world depended upon how far these and similar rights had been carried into practice. Background[edit] In the run up to the Second World War, the United States had suffered through the Great Depression, following the Wall Street Crash of 1929. “The Economic Bill of Rights”[edit] Significance[edit] [edit] See also[edit] Notes[edit]

Strange bedfellows The Economist has an excellent new article on heterodox economics in the blogosphere. Lars Christensen should be proud; he created the name “market monetarist” just a few months ago, and now it has the official imprimatur of The Economist. The article discusses three heterodox schools; neochartalism (MMT), market monetarism and Austrianism. The Economist is careful avoid any suggestion that the three are comparable in all respects: These three schools of macroeconomic thought differ in their pedigree, in their beliefs, in their persuasiveness and in their prospects. Market monetarism has recently been the most successful in garnering high level endorsements. I don’t have any significant issues with the article, but will provide a slightly different take on a couple issues. The market monetarists argue that fiscal stimulus should be redundant, because a central bank can always revive spending—if it sets its mind to it. This is probably true. Tyler Cowen had this to say about the article:

What is Game Theory? Translations: Czech courtesy of Autip. Macedonian courtesy of Zoran Mitreski. Russian courtesy of Oleg Meister. What economists call game theory psychologists call the theory of social situations, which is an accurate description of what game theory is about. In addition to game theory, economic theory has three other main branches: decision theory, general equilibrium theory and mechanism design theory. Decision theory can be viewed as a theory of one person games, or a game of a single player against nature. General equilibrium theory can be viewed as a specialized branch of game theory that deals with trade and production, and typically with a relatively large number of individual consumers and producers. Mechanism design theory differs from game theory in that game theory takes the rules of the game as given, while mechanism design theory asks about the consequences of different types of rules. An Instructive Example Note that higher numbers are better (more utility). What happens?

The Johnsville News EFE Home New Keynesian Economics New Keynesian economics is the school of thought in modern macroeconomics that evolved from the ideas of John Maynard Keynes. Keynes wrote The General Theory of Employment, Interest, and Money in the 1930s, and his influence among academics and policymakers increased through the 1960s. In the 1970s, however, new classical economists such as Robert Lucas, Thomas J. The primary disagreement between new classical and new Keynesian economists is over how quickly wages and prices adjust. A long tradition in macroeconomics (including both Keynesian and monetarist perspectives) emphasizes that monetary policy affects employment and production in the short run because prices respond sluggishly to changes in the money supply. Menu Costs and Aggregate-Demand Externalities One reason prices do not adjust immediately to clear markets is that adjusting prices is costly. Economists disagree about whether menu costs can help explain short-run economic fluctuations. The Staggering of Prices N.

Libertarianism: a nice idea, but doomed Find More Stories Libertarianism: a nice idea, but doomed Darryl Adams There is a lot of discussion regarding libertarianism, but it is being confused by Ron Paul saying stuff. In a nutshell, libertarianism is like pure communism and pure capitalism. A libertarian is someone who knows that his or her decisions are the best, and any regulation is a personal affront to their liberty. So, using a scenario, let's explore one aspect of liberty. In a libertarian world, every person has the right to own and use fireworks in any way they see is appropriate. In the real world, this has some major issues. Firstly, people find new and novel ways, generally with the assistance of alcohol or drugs, to injure themselves or others with fireworks, which are in reality controlled explosives. Secondly, people are often unable to fund their recovery due to the fact they chose not (or are unable) to pay for health insurance. And more importantly, many of the injured are children. This is all well and good. Email x

Perseus Digital Library The Federal Reserve We Need Throughout the past year, Federal Reserve Chair Ben Bernanke has led the choir in warning about the size of the federal deficit. In July, he endorsed extending George W. Bush's tax cuts for the wealthiest households, while suggesting the need for spending cuts to offset the revenue loss. Bernanke's repeated alarms have heightened fears that public deficits could "crowd out" private borrowing, force up long-term interest rates, and choke off the anemic recovery. Bernanke's view may well be the consensus of both Washington and Wall Street. But it is also the polar opposite of the fiscal advice offered by one of Bernanke's most effective predecessors, Marriner Eccles, the Fed chair in the 1930s and 1940s. Today's fiscal conservatives prefer to ignore the history of the 1940s, a period when the Federal Reserve was far more accountable to elected officials and far more independent of the private financial interests that have come to dominate the Fed in recent decades. Advertisement Oops