A Third AJE:M Article

Still pursuing my apparent obsession with the most recent issue of the American Economic Journal: Microeconomics, this post looks at a third article, “Behavioral Economics and the Atheoretical Style”. Perhaps surprisingly, I very much liked Ran Spiegler’s piece. It is … 
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The Greatest Economy?

In a recent tweetstorm, Donald Trump returned to his favorite boast: “Today I have, as President, perhaps the greatest economy in history…and to the Mainstream Media, it means NOTHING. But it will!” This post demonstrates his explanation-point promise is best … 
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Fooling The New York Times

Two weeks ago, the Editorial Board of the New York Times joined Donald Trump in criticizing the Federal Reserve for not reducing interest rates. Both contend that lower rates are needed to promote economic growth. The interest rate they are … 
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Another AJE:M Article

Last week’s post illustrates why the mainstream New Keynesian journal, American Economic Journal: Macroeconomics, has since its debut in 2009 failed to explain the most important instability evidence. The core problem is that AEJ:M editors assign top priority to defending … 
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New Keynesian Wage Rigidity

 

The most recent American Journal of Economics: Macroeconomics arrived in my in-box last week. My interest was piqued by an article on wage rigidity, “Fixed-Wage Contracts and Monetary Non-Neutrality”, by Maria Björklund, Mikael Carlsson and Oskar Nordström Skans (hereafter BCS). … 
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The Efficient-Market Hypothesis

Last week’s post outlined the GEM Project’s theory of nonstationary demand disturbances (NDD). It explains the sort of extreme instability that characterized the 2008-09 Great Recession (as well as the 1930s Great Depression). NDD macrodynamics is not understood in the … 
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The Efficient-Market Hypothesis Needs Work

Last week’s post outlined the GEM Project’s theory of nonstationary demand disturbances (NDD). It explains the sort of extreme instability that characterized the 2008-09 Great Recession (as well as the 1930s Great Depression). NDD macrodynamics in highly specialized market economies … 
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Bare-Bones GEM Stabilization Theory

Heterogeneous Demand Disturbances

In generalized-exchange macroeconomics, featuring microfounded meaningful wage rigidity and the rational suppression of labor-price recontracting, a broad variety of adverse shocks are centrally promulgated by nominal demand disturbances (DD). Stationary demand disturbances are the most common DD class. … 
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Downsizing Plus Proper Monetary Policy

 

As described last week, the stagflation decade was a macroeconomic version of a perfect storm, generating a prolonged period of stubbornly elevated wage/price inflation and unemployment. The global disruption, of course, greatly interested economists. Their contemporaneous work produced a three-part … 
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