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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

How to Get the Economy Back on Track: Austrian Economics vs. Modern Monetary Theory

What’s wrong with economic policy?

When orthodox economic ideas failed to get the United States economy back on track, less conventional monetary policy measures like quantitative easing quickly became mainstream. But despite the Fed’s efforts, the economy is still stalled and unemployment remains high. Is it time to look beyond the old economic thinking that has failed to do the job?

Warren Mosler and Robert Murphy offer two radically different approaches to getting the economy going again. As Murphy puts it, “We’re both saying the government should change what it’s doing, and we have a difference in what we think that should be.”

But what should government do? Read more

Rob Johnson: Is Widening Inequality the New Reality in the United States?

“The common interest is often defeated by concentrated interests”

That’s the straightforward explanation Institute for New Economic Thinking President Rob Johnson gave in a recent interview with RT for rapidly growing inequality in the United States.

Speaking with RT’s Liz Wahl, Johnson discussed how over the past 40 years ‘two Americas’ were created. “It’s an American story. It’s a very painful story,” Johnson said. “And it doesn’t feel like justice in the aftermath of the crisis of 2008.” Read more