We Can Blog it!

  The more reflexive mode brought by the financial crisis to macroeconomics made economists more outspoken about methodological, historical and sociological issues: how have we come to the DSGE dogma? What are its limitations? How can we produce alternative knowledge? Do publishing practices favor a "monolithic" thinking, and if so, how can we change it? What about the graduate training in economics? Read more

A Fight Over Inequality: The 5% Vs. The Rest

In late 2007, the United States started feeling the effects of the Great Recession. And over the ensuing two years the economic disaster spread across the globe.

Precisely when and if the recession ended remains open for debate. Recently, the National Bureau of Economic Research announced that the economic recovery began in June 2009. However, the resumption of growth has been surprisingly slow, to the point where few people can feel the recovery happening regardless of what the statistics say. Read more

Admati and Haldane Named in Time’s "100 Most Influential People"

The Institute for New Economic Thinking would like to congratulate community members Anat Admati and Andy Haldane as being named two of Time magazine’s “100 Most Influential People.” It’s a well-earned distinction for both. Read more

Piketty and thinking about economics

There is a new economics rock-star touring the US by all accounts, and his name is Thomas Piketty. More precisely, the star of the show is Picketty's Capital in the Twenty-First century which is a 700-page volume on wealth distribution in 30 countries over decades and centuries of data. Read more

Secular stagnation? The Future Challenge for Economic Policy

Five years after the financial collapse, unemployment remains very high in much of the western world. Essentially every major country, with the partial exception of Japan, has tended to leave recovery to private markets and eschewed major fiscal policy initiatives. But increasingly analysts are asking whether this faith in private markets is justified. Read more

Speculation and Innovation

Economic bubbles and the corresponding speculation that accompany them inevitably end in a financial bust. Depending on multiple factors, the consequences of these popped bubbles can be grave or transient.

When specuation infects the credit system that fuels the economy, particularly when its object offers no prospect of increased economic productivity, the outcome of the collape is almost always unequivocally negative, and possibly catastrophic. But when the damge of speculation is limited to the market for equity and debt securities, the adverse economic consequences may be muted. Read more

Leading Economists To Gather In Toronto April 10-12, 2014

A Three-Day Conference Exploring the Impact of Innovation on Society

Larry Summers, Joseph Stigltiz, Andy Haldane, Adair Lord Turner, Michael Sandel

And Many More to Speak

Presented by: Read more

Charles Babbage and the History of Innovative Thinking

The forthcoming Institute for New Economic Thinking conference will focus on innovation and its impact on economics and society. When we think about innovation we tend to imagine the future. But as with so many subjects in economics, it’s also useful to examine the past.

The concept of innovation is generally associated with the Austrian-American economist Joseph Aloïs Schumpeter. At the micro level, Schumpeter’s work shed a brighter light on the relationship between innovation and market structure. At the macro level, he clarified the relationship between technological change and business cycles. Read more

Paul Jenkins: Canada’s Central Banking Lessons For The World

By Marshall Auerback

Last September, the Fed announced full speed ahead with its third round of quantitative easing, also known as QE3.

As the saying goes, three’s a charm, or so they hoped.

At the time, the Fed promised to buy $40 billion worth of mortgage backed securities every month through the end of the year and to keep what is essentially a zero interest policy in place through mid 2015. The Fed also announced that it would purchase other long-maturity assets to bring the total monthly acquisitions up to $85 billion, with the bias toward the long end expected to put downward pressure on long-term interest rates. The Fed made clear that QE3 is open-ended, to continue as long as necessary to stimulate to a robust economic recovery. Read more