…an assumption made for convenience. It is used to make numerical simulations feasible. It was based on a division of macro into growth theory and business cycle theory. Also it…

…more detail on the political implications of pseudo-activity in “Marginalia to theory and practice,” written in 1969 and unpublished during his lifetime. In a letter to Herbert Marcuse, dated May…

…attack the critical race theory enemy. They just let icons be icons. Do you think First Liberty Institute would mind that their anti-Kant rant echoes a 1960 Ayn Rand lecture…

…application. If someone says that econmic theory or common sense tell us that free interactions of rational people must be in the interests of those rational people — that person…

…over the place highly mathematical theory showed how that needn’t be true (typically theory based on extreme over use of the assumption of rational expectations do a degree which would…

…it. In addition to explaining the real world reasonably well, a good theory, in my opinion, should not rely on crazy assumptions. After all, a theory that doesn’t make any…

…to cut funding for the police department! Sounds a lot like bloodletting theory, dontcha think? We’ll just drain off the bad blood! It’s so simple and obvious! Cross-posted at Asymptosis….

Passing along a note from Michael Perelman at Econospeak: The Matrix: The Intersection of War, Economic Theory, and the Economy Vincent Portillo and I are working on a new book,…

…in theory the Fed could fire the bazooka, and (again, in theory) the bazooka would have the desired effect. The promise would be credible if: 1. the Fed has shown…

Eminent New Keynesian Economist Susanto Basu commented on a post challenging people to come up with an empirically useful idea in macroeconomics not to be found in “The General Theory…