…is in steady state. I recently noticed that Krugman’s models, which are much simpler than models I can think up and which have clarified my thought , have this form….

…and I did a presidential election forecasting model for The Washington Post. The model had only three factors: The change in gross domestic product in the first two quarters of…

…of financial systems. In short: if you disagree with this post’s headline, you are thinking (perhaps unconsciously) in the “Loanable Funds” model. And the loanable funds model is complete, incoherent…

…causes increased employment and the optimal tax on capital income is positive (even if the revnues are then thrown away). The models are very close to standard models (the assumptions…

…finale. Now that we have our model, how does current data match up to it? Inflation data (CPI less food & energy) is added to the model for 1st quarter…

…to statistical analysis and the methods they use. Our point of departure will be a simple multiple regression model of the form y = β0 + β1 x1 + β2…

…stalled. Last week I posted a model of effective demand that showed how productivity stalls at the effective demand limit. This model is new and unknown. Yet, it shows that…

…DSGE with reality is based on doing whatever it takes to make a DSGE model behave like an old Keynesian model (that is fit the data as old Keynesian models…

…much lower than the CBO was projecting. (link) I based this view on my model of effective demand. That post was linked from Mark Thoma’s economistsview blog. Some commenters at…

…moving the nation’s postal system towards a more privatized model. Based on the work of the Kappel Commission, the PRA embraced a model of the Postal Service that was intended…