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…

…supply potential without considering a demand potential. Because there looks to not be enough demand to reach potential output. The theory says, more output means more income, which means “corresponding”…

…isn’t price rigidity. For one thing, general equilibrium theory has moved on from the models which macroeconomists adopted for micro foundations. In particular, general equilibrium models with incomplete markets can…

…the great institutionalists.” So as Mr. Krugman writes about the usefulness of the IS-LM model, he downplays the Institutional approach to theory, which formed the basis of the New Deal….

…can). I was particularly interested in one of Fatas’s points #3 The need for a unified theory. The idea that economics is a rigorous science pushes economists to look for…

…such similarity between standard theory and data is very unusual. The other interesting result of the experiment is the 2.1% consumer price increase. Now this is less than 3/105 (the…

European Commission fiscal dictates are based on outdated economic theory, strange econometrics and arbitrary ad hoc restrictions on parameter estimates. It is not easy to discuss the technique behind that…

…“theory of the Lump of Labour” was invented in 1891 by David Frederick Schloss in an article titled “Why Working-Men Dislike Piece Work.” The Oxford Dictionary cites Henry Mayhew’s London…

…the imperative of economic growth in accordance with the theory that growth was needed to maintain full employment in a technologically-advancing economy. As Malm points out, though, “an economy of…

…reduction adopt a theory of surplus value very much like that elaborated by Karl Marx in Capital. It is not a matter of whether such a theory adequately describes the…