Economic Policy

The Institute for New Economic Thinking takes a broad view of economic research and supports it in many ways: through its main grant program, through working groups it organizes, and via conferences, panels, and other smaller gatherings of scholars across the globe.

Institute scholars normally publish their work in journals and books. While many – but far from all – of this work appears in working papers sponsored by the Institute and other leading research forums, the Institute also attempts to make its research results accessible to a wider public on its website. Below is a sampling of interviews featuring Institute scholars explaining the significance of their research in non-technical terms.

When the Slogans Stop Working - Raghuram Rajan

In part 3 of INET's interview, Raghuram Rajan says: "The left and the right have a common diagnosis of the problem: the government is captured by big business. Marx said 'Get rid of big buiness.' Stigler said 'Get rid of government.'" But in fact they need to work together, he says, and the task is to delineate the respective responsibilities. Read more

Manipulating Government's Good Intentions - Raghuram Rajan

In part 2 of INET's interview, Raghuram Rajan acknowledges that "government is there to soften the rough edges of capitalism." But - despite good intentions - the government is prone to manipulation by private interests, he warns.


Three Major Economic Fault Lines - Raghuram Rajan

In part 1 of INET's interview with Raghuram Rajan he connects rising inequality and debt, government stimulus programs, and international capital mobility to explain the crisis and fragility in the world economy. Read more

Full Interview: Lance Taylor: Maynard's Revenge

In INET's exclusive interview with Lance Taylor, he discusses the concepts behind his recent book "Maynard's Revenge: The Collapse of Free Market Macroeconomics"


The Flaw in Fiscal Conservatives' Logic - Lance Taylor

In part 6 of INET's interview with Lance Taylor, he says that if the government starts thinking it's a household, then we're in a lot of trouble. Unlike families, governments can sustain investment from debt for the long term.

Fault Lines: How Hidden Fractures Still Threaten the World Economy

"...The financial collapse of 2007 and the recession that followed left many economists on the defensive. News programs, magazines, pundits, and even the Queen of England all asked some variant of the question, why didn't you see it coming?..."

Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. Now, as the world struggles to recover, it's tempting to blame what happened on just a few greedy bankers who took irrational risks and left the rest of us to foot the bill. Read more


Maynard's Revenge: The Collapse of Free Market Macroeconomics

"...Maynard Keynes' revenge is simple. He was correct about how to do macroeconomics. Initial information and then revolution against his ideas beginning in the 1940s were misleading and often wrong..."

Lance Taylor, Professor of International Cooperation and Development at the New School for Social Research, argues that the ideas of J. M. Keynes and others provide a more useful framework both for understanding the crisis and for dealing with it effectively. Keynes’s basic points were fundamental uncertainty and the absence of Say’s Law. Read more


Lance Taylor: Maynard’s Revenge

Lance Taylor Says the Crisis Once Again Proved the Relevance of Keynes’ Fundamental Insights

Since the financial crisis hit, interest in the economic analysis of John Maynard Keynes has revived and then faded somewhat. Many economists still have had little or no exposure to his theories and ideas.

Read more

Full Interview: Europe Viewed from the East - Erik Berglöf

In INET's complete interview with Erik Berglöf, he catches us up on what has been happening in Europe recently. The topics covered include how the crisis affected development and regulation of the greater Euro zone, and how countries in Asia represent both competition and new opportunities.