Generalized Exchange Theory

This blog briefly summarizes the GEM Project. I feel good – downright cheerful – about the purpose and prospects for the endeavor. It is a pleasure to do coherent macroeconomics with powerful wage rigidities at your beck and call. Macro … 
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At Last, A Modern Theory of Production

This is the third and final installment of the “At Last” blogs. Next week will very briefly summarize generalized-exchange macroeconomics, followed by an elaboration on the Project’s biggest idea. The six blogs summarizing the GEM theory constitute a small reference … 
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At Last, A Modern Theory of Labor Supply

The General Theory reorients fundamental macro causation. Nominal demand disturbances inducing same-direction changes in employment implies the scrapping of Keynes’s Second Classical Postulate. Any plausible model of the 1930s depression must break the beautiful W=VMP=MRS analytic strangle-hold imposed by the … 
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At Last, A Modern Theory of Wages

Consider two facts about textbook wage theory. First, it is little changed from its original construction by the great 19th century marginalists. Second, for at least 100 years, mainstream thinking has been badly out of step with the actual behavior … 
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