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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

OMT: Slouching toward Eurobills?

The Eurocrisis has many dimensions—bank solvency crisis, sovereign debt crisis, political unity crisis, and economic/unemployment crisis—but time after time it has been the liquidity crisis dimension driving events, and ECB response to the liquidity crisis driving institutional evolution.  The reason is simple.  Liquidity kills you quick. Read more

What should every non-econ student know about economics?

When they told me I was expected to teach “Introduction à l'économie” this year, I thought, OK, this is straight. Every economist knows how to do that. If not, he will be wisened up after swallowing 50 pounds of Mankiw/Stiglitz-Walsh textbooks, where he will learn everything about how economics has evolved, from the science of how wealth is produced to the science of rational choice under scarcity. Read more