…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…

…supply. This is frequently assumed in economic theory. For decades there has been a heated debate among macroeconomists as to whether it is approximately true of actual economies. DeLong argues…

Before I return to the RBC debate, let’s all pray that FEMA picks the pace. Our prayers all with the Gulf Coast residents and we know our nation can do…

…area. If you want to speak of Business Cycles—I don’t; I consider RBC Theory as its proponents describe it to be the silliness idea this side of phlogiston, but there…

…theory. As it happened, October 1987 was around the time that chaos theory was at its height as the intellectual fad du jour. Indeed, it sort of looked like maybe…

…theory in the last half century plus. Indeed, much of what was new in standard micro theory in the final decades of the 20th century, as well as well into…

David Zetland writes on “replacement theory” (originally published at One Handed Economist) Replacement theory in the US “Replacement theory” is a semi-racist, often-hysterical belief that — in the US —…

…medicine before the germ theory of disease. Lots of people in 1854 were trying to figure out what caused cholera, and how it was transmitted. The dominant theory was “miasma”…

…modern monetary theory people — who say that deficits never matter, as long as you have your own currency. I wish I could agree with that view — and it’s…

…Quantity Theory of money “veil of money.” The Quantity Theory “veil of money” has the trading exchanges in commodity markets be of goods for money and money for goods: therefore,…