…than a monopoly makes for effective competition in the health insurance market, as does economic theory in the form of an Herfindahl index. In fact, since 1982 anti trust law…

To often, we talk about models as if they are reality, instead of reflecting a reality that was approximated. At least forty economists, including at least three ‘Nobel’ Prize winners,…

…Of course, the story they tell is that cutting taxes produces faster economic growth. The fact is, however, the Presidents who cut tax burdens tended to produce slower economic growth…

John Quiggin makes the broad case (link fixed). If you are then stuck with trying to present a Grand Unified Field Theory, you will inevitably lose (or, at best, reduce)…

Our findings do not provide much support for the usefulness of monetary aggregates in forecasting inflation. See more at the St. Louis Fed. Did building realistic macroeconomic models just get…

…during the boom and the worst abuses were made by firms not covered by CRA. But the truth should never be allowed to get in the way of Economic Theory….

…spending gets reinvested and used to develop new products and services that, on balance, benefit the economy—then please explain this in the context of any contemporary economic model. Discuss in…

Come on, guys, somebody take it to the Next Step. Matt Y comes closer than anyone else to getting to the truth of the problem with Macroeconomics. Following Justin FoxSteven…

…economic research”, there might be some validity to their claims. But what they really mean is “principles of neoclassical economics” and “More neoclassical economic research (and teaching)”—precisely the stuff that…

…be the lack of an economic boom in many European countries, which has left them less vulnerable to recession-related cutbacks. Ah, pure RBC theory: the seeds of the next recession…