…together in our model because it is largely irrelevant which entity is taking the money, and well, they’re increasingly the same organization. We construct this model again because we used…

…of production, even though in the “higher stage of socialism” generally labeled “pure communism,” the state is supposed to “wither away.” Capitalism is private ownership of the means of production,…

…in a model that is structurally, qualitatively different from “comparative static” textbook models. Maybe the modeling technique is the message. Or at least, the proper modeling technique is a necessary…

…forecasts of quarterly GDP growth. The explicit model based forecasts are red, the average of Blue Chip professional forecaster forecasts is green. Blue indicates confidence intervals for the explicit model…

…models which illustrate my confused thoughts. My last post (which was messy especially the math in plain ascii and spelling) noted that the government spending multiplier is greater than one…

…until Friday. A basic model of Financial Repression I start with a model that I developed to put financial repression into a visual perspective. Some readers like a visual to…

…post. 1. Effective Demand is not Aggregate Demand Don’t confuse the AS-AD model with effective demand. The common AS-AD model puts AS = AD at any point in time. The…

…the overlapping generations model with money. But the more relevant class of models are standard New Keynesian models with a Taylor rule with too low a coefficient on lagged inflation….

…of the important differences between old Keynesian models and models with rational forward looking agents can be understood with just two periods and very simple math. The problem is that…

The simple jobs and interest rates model generates a yellow flag Several months ago, I started toying with a simple model of interest rates and job growth.* Based on the…