“Very Intuitive” Labor Pricing in the AEJ:M

 The American Economic Journal: Macroeconomics was launched in 2009 during the most perilous U.S. macroeconomic crisis since the 1930s depression. The timing emphasizes that AEJ:M editors’ competence in helping guide the development of coherent, useful macro theory matters. Unfortunately, at … 
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What’s New at the Minneapolis Fed?

 

Presidents of Federal Reserve District Banks, somewhat isolated from policymaking action in Washington and but still wanting to be heard, frequently adopt a signature issue. The new Minneapolis Bank chief, Neel Kashkari, has chosen breaking up the big banks as … 
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Anat Admati’s Confusion

 

This post looks at Anat Admati’s chapter in Progress and Confusion, the 2016 volume that reports on the IMF’s most recent biannual conference on the state of macroeconomic policy in the aftermath of the Great Recession. Admati is the George … 
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Ptolemy-Goldberg Disease

 

Modern macroeconomics is suffering through an epidemic of research gone bad. More and more, theorists’ are giving in to Ptolemaic temptations, making consistency with consensus theory the overriding objective of both model-building and interpretation of the evidence. The defense of … 
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Bob Hall and the Great Recession

Bob Hall (2010), a former colleague of mine at MIT, was one of the first of the handful of mainstream theorists who stepped up and examined the Great Recession using “a simple macro model that captures the most important features … 
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Being Intemperate

The GEM Project’s weekly blog, measured in issues, is now as old as I am, measured in years. That is my excuse for being a bit reflective. The website’s co-founder as well as other friends, using homilies like vinegar versus … 
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The Stagnation Problem

Larry Summers (Washington Post, 10/9/2016) recently summarized the state of global macroeconomic policymaking: “As the world’s finance ministers and central-bank governors came together in Washington last week for their annual global financial convocation, the mood was somber. The specter of secular … 
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New Keynesians Are Stuck

The New Neoclassical Synthesis, the 1990s peace treaty among New Classical, Real Business Cycle, and New Keynesian theorists, establishes mainstream macro model-building standards. In it, New Keynesians accept the necessity of micro-coherence in their work, while New Classical/RBC schools accept … 
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Let’s Stop Fooling Journalists

Two cheers for The Wall Street Journal. In an environment of crushing revenue shortfalls for print journalism, the WSJ continues to devote resources to the analysis of important issues of public policy. This week’s post, inspired by a front-page article … 
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