History of Economic Thought

Tuesday, May 22nd, 2018

The once-dead Phillips curve has come back to life. But its underlying argument is still dead wrong.

Thursday, May 17th, 2018

Many models in macroeconomics ignore money. A new paper by Ricardo Lagos and Shengxing Zhang suggests that is a mistake.

Saturday, April 28th, 2018

Economists bade farewell to Leland Yeager, one of the greatest monetary thinkers of the 20th century, earlier this week.

Friday, April 20th, 2018

Following the financial crisis and Great Recession, many bloggers (and some economists) have expressed disappointment with the state of macroeconomics. Randall Wright offers a more optimistic perspective.

Tuesday, April 17th, 2018

The fact that Anderson’s theory of money seems to fail the Bitcoin test forces us to question our long tradition of issuing new coins that contain precious metals, or banknotes redeemable for some other, already valuable instrument.

Monday, April 16th, 2018

If macroeconomists do not want to take responsibility for crises, then they should refrain from endorsing unstable monetary institutions.

Thursday, April 5th, 2018

In a recent Econometrica article, Matthias Doepke and Martin Schneider model money as a standardized unit of account.

Wednesday, April 4th, 2018

The inability of Hayek and other scholars to join forces against Keynes’s supposed innovations arguably contributed to Keynes’s victory among academics in the immediate post-war period.

Saturday, March 31st, 2018

Economists have modeled some, but not all, of money’s functions.

Wednesday, March 21st, 2018

Liberalism believes that society manages itself better than any top-down authority can. That includes the commercial life of a nation. But it also pertains to civil liberties, international relations, migrations, family and cultural life, and religion. And what does classical liberalism oppose? Managed economies, imperialism, ethnic cleansing, war, arbitrary rule, dictatorship, authoritarianism, and every action of government that goes beyond what is absolutely necessary, if any government is necessary at all. That the meaning of the term changed in the US in the first half of the 20th century is one of the most tragic language distortions on record.

Monday, March 5th, 2018

A plucking up of unemployment is followed by a return down with the same magnitude. But a decline in unemployment does not precede a rise of the same magnitude.

Monday, February 5th, 2018

A phenomenon known as the Replication Crisis is challenging the seemingly unquestionable authority and accuracy that a published study in the natural sciences is expected to have, inviting the question as to whether economists should aspire to the standards of natural scientists or to something better.

Tuesday, January 30th, 2018

Austrian ideas are ripe for introduction into mainstream macroeconomics. But there is still a lot of work that needs to be done.

Friday, January 26th, 2018

Victor Morawetz worried that regional differences would undermine central bank independence.

Thursday, January 18th, 2018

Macroeconomic theorists and policy makers have taken different routes in recent years.

Wednesday, January 17th, 2018

Is the macroeconomics profession taking an Austrian turn in the wake of the Great Recession?

Monday, January 1st, 2018

Allan H. Meltzer’s influence as a monetary historian is undeniable. His role in advancing monetary disequilibrium theory should not be overlooked.

Sunday, December 31st, 2017

Where does money come from? There are two reasonable ways to consider the question.

Saturday, December 30th, 2017

When we discuss the origins of money, we are asking about the generation of a new conception where a particular kind of meaning is attributed to an object for the very first time.

Wednesday, August 2nd, 2017

In my previous posts, Andreas Hoffmann and I discussed the problem of unintended consequences in monetary policy, particularly as applied to the U.S. Federal Reserve and the European Central Bank in the context of the 2008 crisis.

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