Well here goes. I am going to claim that Paul krugman’s work on imperfect competition, increasing returns and trade was a step backwards from the earlier literature. I will attack Krugman from what is considered the left. In any case, I am definitely criticizing him for excessive orthodoxy. I base my case on the work […]
Labor and capital both receive income. How do labor and capital consume products or contribute to savings differently? How have these differences changed over the years? What can we learn from the changes? To answer these questions, I made a model based on the circular flow of the economy, where I separated labor income from […]
by Barkley Rosser via Econospeak (reposted with authors permission) Why Are We Rushing To Get Rid Of Fannie Mae and Freddie Mac? “How many Virginians does it take to change a light bulb? Five: One to change the bulb and four to talk about how great the old bulb was.” I think I am turning […]
When we as US citizens use our income, whether labor or capital income, to buy a product from another country, those US dollars are remitted to a bank. Now the bank may be in the United States or in a foreign country. If the US dollars are remitted to a foreign bank, that bank pays […]
by David Zetland Local versus regional control In response to this: “The public sector is often better at handling inter-agency cooperation and the private sector is often better at delivering cost-effective, measured results. In either case, the local government plays the most important role as it needs to oversee and regulate all players. Poor regulation […]
John Quiggin writes something absolutely conventional and accepted by 99% of macroeconomists and I throw a cow. Sometimes I bore myself but I must object to “The big problems arose out of the Phillips curve, as I’ve discussed before. First it was oversold as a stable trade-off by Keynesians [citation needed].” Which Keynesians when ? […]
Lifted from Stochastic Thoughts comes a whimsical post by Robert: Is there a Craig who own’s Craig’s list ? This is an honest question. If so, why isn’t he very rich ? Classified ads were a huge cash cow for Newspapers. The internet is killing them not because of say blogs, but because it is […]
U.S. Population Distribution by Age, 1900 through 2060 (Bill McBride,Calculated Risk) Animated wonder.
After posting an article about how imports create saving for investment, a conversation was started. The conversation led to doing more research and developing new explanations to understand the basic circular flow model. This is actually a very important issue to get right. The circular flow is such a basic part of understanding the economy. […]
Says John Aziz, “Economics, broadly defined, is the study of human action and interaction.” Which reminds me to post this, which has been long brewing in my head. More carefully and precisely defined, I posit the title of this post: Economics is (should be) the study of how individuals and groups react to changing circumstances (which circumstances include […]