Blogs

In which MIT decided to teach micro first so as to make economics more relevant

I've already blogged on how undergraduate education evolved at MIT in the postwar era here and here, but since Mike Konczal and Paul Krugman make the case that, to bring introductory economics closer to the real world, macro should be taught before micro as Samuelson did in the first 13 editions of his Economi Read more

Apply Now: Free Undergraduate Seminar with Michael Sandel

The Institute for New Economic Thinking is seeking a select group of undergraduate students to participate in the filming of a free, three-day series of discussions on ethics and economics with Harvard Professor and philosopher Michael Sandel, the Institute's newest Senior Fellow. Read more

Mature history of economics

In the past decade, the volume of literature in the history of economics has been of 500 articles and just under 50 books a year. The graph below traces the count in two year intervals (articles left axis, books right axis). The absolute volume is stable but given the growth of economic literature in the period, stable might be rebranded as static.

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[PART 2] U.S. Current Account Deficits and German Surpluses: The Role of Income Distribution in Global Imbalances

Till van Treeck, Jan Behringer, Christian A. Belabed, and Thomas Theobald

In our two papers, we analyze how changes in personal and functional (wages versus profits) income distribution interact to produce different macroeconomic outcomes in different countries. On the basis of a stock-flow consistent model calibrated for the United States, Germany, and China, simulations suggest that a substantial part of the increase in household debt and the decrease in the current account in the United States since the early 1980s can be explained by the interplay of rising (top-end) household income inequality and certain institutions (e.g. easy access to credit, privately financed education and health care systems). Read more

[PART 1] U.S. Current Account Deficits and German Surpluses: The Role of Income Distribution in Global Imbalances

Till van Treeck, Jan Behringer, Christian A. Belabed, and Thomas Theobald

Germany’s economic policies are under attack from all sides. Read more

In the thick of it (labels and research)

Historians like labels. X history. History of y. The labels carve out subjects, set boundaries in time and space, at times even suggest methodological commitments. Read more

Shadow banking and the global financial ecosystem

Originally Posted 7 November 2013 at VoxEU

The aim of this article is to present a more comprehensive approach to the way we conceptualize, regulate and measure the financial eco-system than what has been done to date. It provides a global macro context for the intellectual framework developed by the Shadow Banking Colloquium at INET (see Mehrling et al, 2013) to better understand shadow banking. Read more

Mariana Mazzucato's TED Talk: Government — Investor, Risk-taker, Innovator

Why doesn’t the government just get out of the way and let the private sector -- the “real revolutionaries” -- innovate?

Do social movements create new ideas?

The short answer is yes. For the long answer I will make you sit through seven paragraphs. Read more

An Interview with Adair Turner: “Which Capitalism for the 21st Century?”

Originally published by the Lee Kuan Yew School of Public Policy at the National University of Singapore
By Alvin Lee Read more