Al Rees Got Really Upset

The last two week’s blogs lamented mainstream macroeconomists’ complacency about simply ignoring involuntary unemployment. Some friends of the Project worry about my being intemperate about the profession’s leaders pretending to be stabilization relevant. I think that more outrage, not less, … 
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Students Are Rejecting Macro

 

Last week’s post asserted that the failure to explain the most crucial evidence on macro instability evidence would eventually doom mainstream market-centric macroeconomics. This week’s post looks more closely at an important source of that rejection.

David Colander’s (2005, p.180) survey … 
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Advice from Kafka

 

Over the past month, the GEM Blog has mounted a powerful, attack on the stabilization-relevance of mainstream macroeconomics. In a recent conversation,  a friend of the GEM Project argued that, despite the demonstrated superiority of the generalized-exchange approach, the Project’s … 
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Compact GEM Narrative

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

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

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

 

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

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

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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