Category Archives: Macroeconomic policy

Philip Pilkington: ‘Uncertainty’ in Contemporary DSGE Modelling – Not Even Wrong

Yves here. This post might seem a smidge technical for generalist readers, but have faith. Pilkington uses DSGE models, a widely used type of macroeconomic forecasting model, to demonstrate the prevalence of intellectual bankruptcy in economics. As he writes,

The level of scholarship in contemporary economics is absolutely shocking. Contemporary theorists just pick up on buzzwords that they hear in the media and then assume that they have understood them. Then they scramble to build some arcane model or other in which they assure others that they have captured the meaning of the buzzword in question. The mathematics then becomes a cloak hiding the fact that they have never bothered to actually think through the concepts they are using.

This is frighteningly similar to something I wrote:

That was one of the scary things I finally figured out during my last visit to DC. I thought people constructed policy first and then reduced it to soundbites to sell it. I came to realize that most people in DC reason from soundbites (as in their analysis and policy design is constructed from soundbites from the get-go).

Bill Black: The EU Center-Right and Ultra-Right’s Continuing War on the People of the EU

The New York Times has provided us with an invaluable column about the interactions of the EU’s rightist and ultra-rightest parties. It is invaluable because it is (unintentionally) so revealing about the EU’s right and ultra-right parties and the NYT’s inability to understand either the EU economic or political crises. The NYT article illustrates its points by presenting a tale entitled “A German Voice, Hans-Olaf Henkel, Calls for Euro’s Abolition.” It treats Henkel, an open racist and austerian, as a reputable figure, apparently because he is wealthy.

Yanis Varoufakis: Europe’s Crisis –The Rise of the Ultra-Right is the Left’s Fault

The recent European elections were a decisive victory for the right, and the craven, co-opted left has no one but itself to blame.

How the Troika, the WSJ and the NYT Keep the Public Befuddled About Austerity and Deflation

Deflation proves that austerity policies are failing, but the media is doing a remarkable job of keeping readers confused and ignorant.

Robert Pollin and Dean Baker Discuss the Anemic Recovery and Why Economists Don’t Recommend Real Remedies

A good discussion of why the weak economic recovery has only helped those at the very top, and why economists who know better continue to enable that.

Mathew D. Rose: When European Politicians Cannot Read the Handwriting on the Wall

Despite the alarming results of the European elections last week, Angela Merkel remained unflinching. That is a cause for concern. European politicians believe the solution to voter ire is better messaging, as opposed to a change in policy.

Bill Black: Spain’s “Stimulus” Plan – Austerity, Rebranded

Spain’s conservative government, eager to change the media’s emphasis on its repudiation in recent EU elections, has launched a media campaign stressing its adoption of an aggressive “stimulus” program. But once you get past the hype, this new program is the same old failed austerity snake oil.

Michael Hudson: The EU Parliament Elections as a Vote Against the Oligarchs

The US press and newscasts make it appear that Europeans have voted against poor immigrants and foreigners. What they voted against was the super-rich, the oligarchy.

Randy Wray: Taxes and the Public Purpose

Governments use taxes to move resources to the public sector, where they can be used to promote social goals.

Yanis Varoufakis: One Extreme Europe? On the Parliamentary Election Results

Conventional wisdom that extreme parties on the right and left won in the European Parliamentary elections. In fact, only one extreme won.

Michael Perelman: Vietnam – Invitation to a Morass

How the Vietnam War helped usher in neoliberalism, financialization of the economy, and the use of military spending as stealth stimulus.

Randy Wray: What are Taxes For? The MMT Approach

MMT argues that “taxes drive money” in the sense that imposition of a tax that is payable in the national government’s own currency will create demand for that currency. Sovereign government does not really need revenue in its own currency in order to spend.

Michael Hudson: Stockholm Syndrome in the Baltics – Latvia’s Neoliberal War against Labor and Industry

How Latvia, a test case for neoliberal colonialism, has proven to be a test case of how finance-serving policies crush labor and enterprise.

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Category Archives: Macroeconomic policy

Philip Pilkington: ‘Uncertainty’ in Contemporary DSGE Modelling – Not Even Wrong

Bill Black: The EU Center-Right and Ultra-Right’s Continuing War on the People of the EU

Yanis Varoufakis: Europe’s Crisis –The Rise of the Ultra-Right is the Left’s Fault

How the Troika, the WSJ and the NYT Keep the Public Befuddled About Austerity and Deflation

Robert Pollin and Dean Baker Discuss the Anemic Recovery and Why Economists Don’t Recommend Real Remedies

Mathew D. Rose: When European Politicians Cannot Read the Handwriting on the Wall

Bill Black: Spain’s “Stimulus” Plan – Austerity, Rebranded

Michael Hudson: The EU Parliament Elections as a Vote Against the Oligarchs

Randy Wray: Taxes and the Public Purpose

Yanis Varoufakis: One Extreme Europe? On the Parliamentary Election Results

Randy Wray: What are Taxes For? The MMT Approach

Michael Hudson: Stockholm Syndrome in the Baltics – Latvia’s Neoliberal War against Labor and Industry

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