The Institute's blog

Understanding Money: Free Course Produced by the Institute for New Economic Thinking!

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!

The course, produced by the Institute for New Economic Thinking and taught by the Institute’s Perry Mehrling, explores money markets and how they work, both in the U.S. and internationally. Read more

How Milton Friedman’s NAIRU Has Increased Inequality, Damaging Innovation and Growth

By Servaas Storm and C. W. M. Naastepad , both Senior Lecturers in Economics at the Delft University of Technology

For many years, economic fatalism ruled the roost: markets are sovereign, governments must never interfere, social democracy is passé, and politics is effectively dead. The big bang of the crisis has ended this fatalism, and is – albeit slowly – leading to calls for a fairer capitalism (as by the Occupy movement).

Read more

Mariana Mazzucato and William Lazonick: Rethinking the State

Is it time for policymakers cut markets down to size?

Institute grantee William Lazonick argues that markets have overstepped their bounds in his recent interview with grantee Mariana Mazzucato as part of her “Rethinking the State” video series. Read more

Ha-Joon Chang and Mariana Mazzucato: Rethinking the State

What is the role of the state in the economy?

Technocrats preaching the “free market” see the state as merely a tool to correct market failures. But should the state play a more active role in shaping the economy and promoting smart and inclusive growth? Read more

Katharina Pistor: The Legal Theory of Finance

Bad theories can have very real consequences.

The most recent example was the 2008 financial crisis, which showed that inadequate theories about the financial system can help create a systemic collapse.

But did economists learn their lesson? Read more

IEA 2014 World Congress Calls for Submissions

The International Economic Assocation has sent out a call for submissions for its 17th World Congress. The event will take take place on June 6-10, 2014, and is supported by the Centre for International Governance Innovation (CIGI) and the Institute for New Economic Thinking. The text of the call for submissions is quoted below. You can also download it as a PDF at the bottom of the page.  Read more

A much-maligned engine of innovation - Martin Wolf reviews Mariana Mazzucato's "brilliant" new book

Don't miss the review of Institute for New Economic Thinking grantee Mariana Mazzucato's new book, The Entrepreneurial State, in today's Financial Times. Read more

How Big Finance Crushes Innovation and Holds Back Our Economy

By Lynn Stuart Parramore

Author's note: This post is based on papers presented and remarks made during a conference panel I moderated featuring William Lazonick of U Mass-Lowell, Jan Kregel of the Levy Institute and Damon Silvers of the AFL-CIO.

Read more

Did Capitalism Fail? The Financial Crisis Five Years On

Did the global economic collapse in 2008 stem from structural failures in the capitalist system?

During his keynote address to the European Financial Congress, Institute Advisory Board member Roman Frydman argued that capitalism itself did not fail. Instead, Frydman placed the blame on those who promulgated the theories that guided policy makers. Read more

Methodology, Systemic Risk, and the Economics Profession

By Institute grantees John Davis and Wade Hands

The March 2013 issue of the Journal of Economic Methodology, “Methodology, Systemic Risk, and the Economics Profession,” on the relationship between herding behavior and knowledge production in economics was supported by a generous grant from the Institute for New Economic Thinking. Read more