November 2012

Katharina Pistor: False Dichotomies in Law and Finance

“You can’t understand finance if you don’t put law front and center.”

So says Katharina Pistor in her innovative keynote address at INET's False Dichotomies conference, which was co-hosted with the Center for International Governance Innovation (CIGI) in Waterloo, Canada on November 16-17th, 2012. Read more

Big business has corrupted economics

Big business has corrupted economics - Guardian UK

You know the country is in a financial mess when even establishment figures such as Rachel Lomax are calling for revolutionary thinking

by Aditya Chakrabortty Read more

INET Hiring Postdoctoral Fellows

The Institute for New Economic Thinking has openings for 2-4 Postdoctoral Fellows. The Institute is particularly interested in candidates whose work lies within our core research areas: financial instability, economic inequality, and innovation. Fellows pursue their own research while contributing actively to one or more of INET’s many research and education initiatives. Appointment is for one year but may be renewable. PhD must have been received within the past three years. Start date is flexible, salary competitive. The positions will be based in INET's offices in New York. Read more

Karine van der Beek: Human Capital in the Industrial Revolution

Did the industrial revolution increase the relative demand for skilled labor, or decrease it? Read more

A Post-Keynesian Pioneer Meets the University of Chicago

Vital economic debate is alive and well in Chicago.

Post-Kenyesian economist Paul Davidson recently was invited to the University of Chicago to give a lecture on Keynes’s solutions to current economics crises – solutions that are very much at odds with the traditional approaches associated with Chicago School economics. Read more

Cars Hommes – How Expectations Interact to Create Bubbles

How do economists make their models work. By assuming that investors have rational expectations and that every market participant is alike. However, things quickly get messy once economists start to acknowledge that people are different, interact with each other, and change heuristic forecasting strategies based on recent performance.

Cars Hommes navigates through the mess. He employs laboratory experiments with human subjects and fits complex models to empirical data with the goal of understanding whether introducing more financial derivatives can stabilize or destabilize markets and how the interaction between agents with heterogeneous expectations affects price dynamics in the housing market. Suddenly, theory gets much closer to reality.

Krugman and Stiglitz: What's the Future of Economic Thinking?

At INET’s Conversation on the State of the Economy with Joseph Stiglitz and Paul Krugman, we asked two Nobel laureates and got two different answers.

Krugman began by giving a nod to young economists and then pointed to a focus on empirics and humility when it comes to believing your own models. Read more