Saving Economics from the Economists

Saving Economics from the Economists

by Ronald Coase

"Economics as currently presented in textbooks and taught in the classroom does not have much to do with business management, and still less with entrepreneurship. The degree to which economics is isolated from the ordinary business of life is extraordinary and unfortunate. Read more

Is Capital Flight Taking Place in China?

From the balance of payment perspective

Despite a larger-than-expected amount of net exports this year, China’s capital accounts have printed negative numbers for several months, while in the past China always reported surpluses in both current account and capital account. Some analysts start arguing that China is facing tremendous amount of capital outflow implying that many people are losing confidence on China’s economy. Moreover, they say, Renminbi depreciation in the first three quarters support the view that capital is flowing out of China. Acknowledging capital flight a very important issue, we at the central banking seminar made an effort to find out the reasons for the Renminbi depreciation and the capital account deficit. 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

The Theory of the Firm: Language, Model and Reality

In a previous post we queried whether the theory of the consumer as developed in the first three chapters of Mas-Colell, Whinston and Green (and indeed other comparable texts) provides anything by way of content beyond what is implied by the abstract description of consumers as agents who are maximizing something.  [We did not discuss chapter four, on aggregation of demand, to which we may return later].  As we noted then, a comparable point can be made about the theory of the firm. 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

Blending the Economy and Science

For one more time traveling closer to home – Mainz! It’s been the annual meeting of the German Society of the History of Science (the kind of academic club one has to be nominated for membership). It’s been my debut in these corners of conversations about science: I walked away truly inspired and refreshed, yet without having found a new home. Read more

Pleasure, Happiness and Fulfillment: The Trouble With Utility

For nineteenthth century figures such as Bentham and Jevons, the concept of utility was associated with satisfaction or pleasure experienced. However, initially utility was defined as a property of an object -- its usefulness and capacity to procure such pleasure. For Bentham, utility was “that property of any object, whereby it tends to produce benefit, advantage, pleasure, good, or happiness”. Subsequently utility came to be understood as a feature of persons rather than objects: “the sum of pleasure and pain prevented” (Jevons, 1871). Read more

To teach or not to teach economics with The Wire?

Edit 04/11: meeting of mind. there was a session on just the same topic yesterday at the Kilkeconomics festival, by Peter Antonioni. If any visitor attended, please complement or summarize what was said there.  Read more

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