The Institute's blog

Pasinetti on Institutional Forces and the Discipline of Economics

Ever since 2008, increasing numbers of economists, students, and even market professionals have protested the way economics is currently taught and practiced.

By now the revolt is close to a worldwide phenomenon. The discussion thus far has centered mostly on textbooks, pedagogic procedures, and what might be termed the broad “ecology” of the profession of economics, which frequently seems too close to the markets it purports to study for critical perspectives to emerge.

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UK Business Secretary Vince Cable to Open Major Conference

Vince Cable, Andy Haldane and Adair Turner are among the keynote speakers at a major international conference challenging conventional thinking about the role of the state in driving the innovation needed for sustainable, inclusive growth.

ECB’s Coeure Supports Student Curriculum Reform Movement

The global student movement to transform the economics curriculum received some unexpected high-level support this week from Benoit Coeure, a member of the Executive Board of the Europen Central Bank.

In remarks Tuesday at a panel discussion held by the ECB’s Macro-Prudential Network, Coeure said, “The typical economics curriculum tends to emphasize the frictionless benchmark more than the realistic variants. Shifting the academic focus to a world with frictions would have a welcome impact on teaching, allowing central banks to hire from a pool of young economists better equipped with methods and tools to address policy challenges.” Read more

Why the Economics Curriculum Needs the Context of History

By Abdul Alrahman Alasaad

Reforming the economics curriculum is emerging as a hot topic in academic circles.

Critics of the current approach to economics have cited numerous flaws in the way the discipline is taught. But one key area of focus must be to return the study of history to the standard economics text. Because the way economics is taught now, decontextualized from history, fails to explain the selective economic models that it is teaching appropriately and fairly. Read more

Inequality as a cause of the financial crisis and current account imbalances

Thomas Piketty’s Capital in the 21st Century has spurred an intense debate over the macroeconomic causes of income and wealth inequality. Meanwhile, a growing amount of research suggests that inequality itself is an important cause of macroeconomic instability.

In the short interview with Deutsche Welle, Institute grantee Till van Treeck explains how inequality can contribute to macroeconomic instability.

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Lifetime Achievement Award for Prof. Sir David Hendry

One of the world's leading economists, INET Oxford's Prof. Sir David Hendry received a unique award from the Economic and Social Research Council (ESRC)

At a ceremony June 6th he was given the Celebrating Impact Lifetime Achievement Award. Sir David is Professor of Economics at the University of Oxford and Director of the Programme in Economic Modelling in the Institute for New Economic Thinking at the Oxford Martin School (INET Oxford).

Piketty Responds in Detail to FT Criticism

Thomas Piketty has written a detailed response to the critique of his work by the Financial Times. His full response is available here and the first few paragraphs are below.

Full Disclosure: The Institute for New Economic Thinking has extensively supported the World Top Incomes Database on which Piketty’s book Capital in the 21st Century draws extensively. Read more

FREE Course on the Economics of Money and Banking

Missed last year's course? Interested in learning some new economic thinking? Want to spot the next financial crisis before it’s too late? Then sign up for this FREE online class on The Economics of Money and Banking! Read more

Lance Taylor: The Triumph of the Rentier? Thomas Piketty vs. Luigi Pasinetti and John Maynard Keynes

Thomas Piketty’s Capital in the Twenty-First Century has stimulated enormous interest. Among the most provocative parts of the book is his discussion of the economic factors making for the concentration of wealth in the long run. This is a topic of great popular interest, but it also involves some of the most subtle and controversial aspects of contemporary economic theory. Read more