Robert Waldmann Mark Thoma linked to a post at my personal blog about the history of economic thought 101, what did Keynes write in “The General Theory of Employment, Interest…

…this directly contradicts the theory they learned in introductory economics that labor demand is a downward sloping function of labor compensation. But remember, that theory is simply a massive over-simplification…

…wisdom (not to mention accepted economic theory) in America today. In general, when tax cuts occurred during or just after a recession, the resulting expansion has been slower than when…

…know this. Yet the idea that there is some general smoothness property in the mapping from assumptions to conclusions absolutely dominates economic theory. Yes I just said that economic theory…

by Linda Beale Yves Smith (Naked Capitalism) links to an interesting post on “Economists for Firing Larry Summers” (I’ll call this EFLS). The author of the blog is a PhD…

…an uncaused cause). However the theory is theory which is immediately comprehensible to the man on the street and immediately convincing. For example, Angrist assumed that a special relationship between…

Robert Waldmann Neoconservatives have expressed sympathy for “intelligent design theory,” that is, creationism. This is well documented by Ronald Bailey’s article in “Reason on line.” Bailey discusses why neoconservatives might…

…shocks scientists when it occurs. It also causes them to, first try to modify the theory to fit the new data and second (and very often) to abandon the theory….

…have abandoned the valid insights of Keynes is that they have aimed for a general theory, when they should Oh shit. I just said Keynes’ work good “General Theory” very…

…theory shows and we have a long history of the world working this way. I think the difference stems from the way academic economist view supply curves. They look at…