• About
  • Contact
  • Editorial
  • Policies
  • Archives
Angry Bear
Relevant and even prescient commentary on news, politics and the economy.
  • US/Global Economics
  • Taxes/regulation
  • Healthcare
  • Law
  • Politics
  • Climate Change
  • Social Security
  • Hot Topics
« Back

Simon Wren-Lewis on Heterodox economics, mainstream macro and the financial crisis

Robert Waldmann | August 30, 2016 12:27 pm

Here I am just going to suggest you click and read https://mainlymacro.blogspot.it/2016/08/heterodox-economics-mainstream-macro.html . I do have some thoughts at Robert’s Stochastic thoughts but I don’t think they are worth your time.

Comments (2) | Digg Facebook Twitter |
2 Comments
  • Barkley Rosser says:
    August 30, 2016 at 4:27 pm

    I have a problem with Simon’s discussion, but I am not going to post there as after I posted something there that criticized him, he has taken to posting nothing I send there. Anyway, what he seems to miss as far as I am concerned is that the key to all DSGE models, including these newer ones with financial frictions, is an assumption of rational expectations as part of the microfoundations. Simon mentions Minsky in connection with this issue, but Minsky had nothing to with ratex. However, Simon is very big on maintaining some sort of proper microfoundations.

    I have no problem with having microfoundations, but I would say they should be based on behavioral econ and how people actually think and behave, along with preferably involving heterogeneous agents. Simon simply misses this entirely. I think this is not one of his better posts.

  • Barkley Rosser says:
    August 31, 2016 at 3:45 pm

    For the record, Simon has posted a comment by me along these lines on his site. So I retract my complaint about that issue.

Featured Stories

“About that Texas Republican platform,”

Angry Bear

On Roe, offer to compromise with Republicans, and vilify the conservative justices

Eric Kramer

There is a proper response to this travesty

run75441

Oh, The Camus Of It All

Ken Melvin

Contributors

Dan Crawford
Robert Waldmann
Barkley Rosser
Eric Kramer
ProGrowth Liberal
Daniel Becker
Ken Houghton
Linda Beale
Mike Kimel
Steve Roth
Michael Smith
Bill Haskell
NewDealdemocrat
Ken Melvin
Sandwichman
Peter Dorman
Kenneth Thomas
Bruce Webb
Rebecca Wilder
Spencer England
Beverly Mann
Joel Eissenberg

Subscribe

Blogs of note

    • Naked Capitalism
    • Atrios (Eschaton)
    • Crooks and Liars
    • Calculated Risk
    • Economist View
    • Hullabaloo
    • Talking Points
    • Memo
    • Washington
    • Monthly
Angry Bear
Copyright © 2022 Angry Bear Blog

Topics

  • US/Global Economics
  • Taxes/regulation
  • Healthcare
  • Law
  • Politics
  • Climate Change
  • Social Security
  • Hot Topics
  • US/Global Economics
  • Taxes/regulation
  • Healthcare
  • Law
  • Politics
  • Climate Change
  • Social Security
  • Hot Topics

Pages

  • About
  • Contact
  • Editorial
  • Policies
  • Archives