Compact GEM Narrative

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Last week’s post reviewed a number of consequential innovations of the GEM Project. This week provides a companion piece, a bare-bones summary the generalized-exchange narrative. Good theories accommodate compact descriptions. What follows outlines, in just over 400 words, the GEM … 
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GEM Project Innovations

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The fundamental message of the GEM Blog is the superiority of the generalized-exchange model class relative to market-centric thinking that dominates the macro mainstream. The former, developed in the GEM Project, takes seriously what everybody knows. Workplaces in large, specialized … 
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Preventing Another Great Recession

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There are two really good reasons for the GEM Blog’s obsession with mainstream New Keynesian theorists’ take on how to prevent Great Recessions. First, the issue is extraordinarily important. The 2008-09 crisis generated costs of many trillions of dollars. Effective … 
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The Stock Market and Acute Instability

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I just finished reading Marcelle Chauvet’s “Stock Market Fluctuations and the Business Cycle”. Available on SSRN, the paper “explores the possibility of predicting business cycle turning points using promptly available financial variables…. The proposed model generates predictions of business cycle … 
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Oscar Lange and John Maynard Keynes

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In their History of Economic Thought (2011), E.K. Hunt and Mark Lautzenheiser nicely capture a curious contribution to the eventual, and damaging, mainstream rejection of Keynesian macroeconomics. One of the inspirations for the anti-Keynesian New Classical insurgency was a professed … 
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The Queen’s Question

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Queen Elizabeth, appearing at the London School of Economics during the Great Recession, famously asked a question along the lines of: Why didn’t anybody see this coming? That was the question I got, over and over again, from friends, acquaintances, … 
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Jeremy Stein’s Mistake

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I know Jeremy Stein. He is a good economist, is a pioneer in macroprudential analysis that studies the interplay of financial regulation and macro stability, and served with distinction as a Governor of the Federal Reserve. It is disappointing that, … 
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Yellen’s Mistake

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I have known Janet Yellen for a long time. She is a good economist, a pioneer in efficiency-wage modeling, and a successful Chair of the Federal Reserve. But, in one aspect of the Fed’s management of interest rates, she continues … 
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The Chicago School Juggernaught

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Here’s an existential question. How can we stop mainstream theorists from betting the ranch on market-centric macroeconomics? Shaming them with their self-imposed isolation from the most important facts hasn’t worked. The widespread use of carefully selected evidence to validate their … 
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