The Institute's blog

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

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

The Growing Movement to Rethink Economics

By Alexander Haas and Lu Liu

What started out in 2012 as a small conference under the label of “Rethinking Economics” at the University of Tübingen in Germany has now grown across Europe. Read more

Rejuvenation: An Excerpt from “Wealth and Power: China’s Long March to the Twenty-first Century”

The following is an excerpt from the book, Wealth and Power: China's Long March to the Twenty First Century, which comes out tomorrow, July 16th. Written by Orville Schell, Director of the Asia Society's Center on U.S.-China Relations, and John Delury, the book provides a panoramic narrative of China's rise to prominence  as seen through the lives of eleven influential officials, writers, activists, and leaders, whose contributions helped create modern China. Read more

Harold James: Can the Monetary Union Survive the Euro Crisis?

Political leaders in the euro zone have yet to determine a way out of the explosive economic turmoil they face. But Institute for New Economic Thinking Advisory Board member Harold James has an answer.

Speaking at a recent UC Berkeley conference on the ‘Future of the Euro,’ James said that the solution to Europe’s troubles lies not simply in monetary policy but in forming and strengthening a political union, which he stated was “absolutely fundamental” to resolving the crisis. Read more

Institute Grantee James K. Galbraith Wins 2014 Leontief Prize

Institute for New Economic Thinking grantee James K. Galbraith will be awarded the 2014 Leontief Prize for Advancing the Frontiers of Economic Thought by the Global Development and Environment Institute (GDAE) at Tufts University for his contributions to the study of poverty, inequality, and well-being.  Read more

Let Them Eat Credit: Has Financial Capitalism Failed the World?

Did the financial crisis of 2008 represent a failure of the capitalist system?

That crucial question was in the air when Institute for New Economic Thinking Senior Fellow Lord Adair Turner spoke in May at a special Head to Head debate hosted by Al Jazeera at England’s legendary Oxford Union. Read more