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The Problem with Macro, and An Apology

…persists. Which is another reason we have a problem with Macro. Chemists don’t teach Phlogiston Theory. None of the biologists, biochemists, or biophysicists I know talks about the glories of…

Adam Smith on Corporatism

…“Econ schools should be teaching a lot more game theory and a lot less price theory.”) It’s also worth noting that the Koch-brothers shop over at GMU and econlog, from…

Educating Dean Baker

…agents and models with overlapping generations is fundamental in the macroeconomic theory literature. Theory might be pointless but not because we can tell that something is logically impossible even though…

Merry Christmas!

…Santa delivering presents and spreading the Christmas joy – Santa is a social planner! In advanced economic theory, there are two types of models: the social planner model (very much…

The Time I Offered to Bet $10,000

…less than 10%, economic theory says that I should have offered the higher amount, even knowing I couldn’t cover it. I believe this is the theory recently used by MF…