…much better.” 2. The market monetarists’ whole theory is that fiscal policy doesn’t matter (nor, apparently, does anything else) because the Fed will always offset it with monetary policy. So…

…of equilibrium and Keynes didn’t do that. But, this is Chapter 3 where he lays out the essentials of the general theory. And he says very much, “I am looking…

…Tobin over Milton Friedman so completely that there is not even a smudge left where Friedman’s approach to a monetary theory of nominal income determination once stood. And Robert Walmann…

…Nobel-prize-winning Prospect Theory been so studiously ignored in mainstream economists’ models? Why is the discipline devoted to armchair-theorized models, instead of studying what people do in the field? Why isn’t…

…rates after World War II, and hence a persistent shortage of demand — hence the secular stagnation theory briefly prominent. (There was even an early Heinlein novel built in part…

I have gone a bit quiet on the QE front. Obviously, this is because I have been surprised and my pet theory has taken a beating. The theory was that…

…the US and appreciate their currency. Then the massive inflation that should have happened in the US will blow back to the US. My thoughts on his theory are these……

…the effective demand limit, like for instance, now…. Keynes sums up the above with a quote from his General Theory, chapter 21… “In this case we have constant returns and…

…remove a particular issue from the normal political process. This issue has a name–or, rather, the legal theory that challenges the constitutionality of such state constitutional amendments does. It’s called…

Some years ago Paul Krugman gave perhaps the best argument against the inequality-causes-underconsumption theory of secular stagnation: the idea that rich people spend less of their income/wealth, so if wealth/income…