Archive
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Article
Crisis After Brexit: Let us put an end to the old Europe of denigrators
Jul 5, 2016
No, it’s not bureaucracy that is to blame - It’s the EU that has a problem, because urged by Germany it has pushed a kind of naive globalization, the outgrowths of which contribute to the upswing of dim-witted populists. Not only in the EU. Time for a new paradigm.
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Article
Spain: The politics of austerity and deflation
Jul 4, 2016
An election has failed to resolve a political deadlock that coincides with long-term economic stagnation
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Webinars and Events
Advanced Graduate Workshop in Development and Globalization
WorkshopJul 4–17, 2016
The Advanced Graduate Workshop in Development, led by Nobel Laureate Joseph Stiglitz is interested in identifying the complex interactions that influence well-being, development and growth.
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Article
Economics in a Different Key
Jul 1, 2016
INET interviews Luigi Pasinetti
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Article
Brexit: The Tectonic Plates
Jul 1, 2016
The Brexit referendum is nothing less than an earthquake. But when an earthquake happens, seismologists try to understand how and why the tectonic plates had been shifting, and the pressures that had been building to bring about the event. The causes underlying every earthquake are specific in how they come together, even if they are seen in different places.
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Collection
Future of Europe
New perspectives on Europe’s unfolding financial, economic and political crises
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Article
A Bridge From Brexit
Jun 30, 2016
Several days ago, we woke up to a new world. Britain had voted to leave the European Union. Some were pleased, many were deeply concerned. What is likely is that many will be affected. Some wonder if the EU will survive. It will take months if not years to fully understand the ramifications.
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Video
Wealth & Inequality: Back to the Future
Jun 29, 2016
What fraction of total economic growth accrues to the top 10%, top 1%, etc.? How does growth per capita of the bottom 90% compare to overall growth? Zucman discusses his research and efforts to bring more hard data into the inequality dialogue.
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News
CALL FOR PAPERS: Law, Economics & Public Policy
Jun 28, 2016
The National Institute of Public Finance and Policy (NIPFP) in collaboration with the Institute of New Economic Thinking (INET) are organising India’s first “Law Economic Policy Conference (LPEC 2016)”. The aim is to bring together economic, legal and policy thinkers together to consider policy issues in a holistic manner.
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Article
The Bank for International Settlements Looks Through the Financial Cycle
Jun 28, 2016
The BIS offers a comprehensive picture of the state of the world economy, and of dysfunctional policies holding it back
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Article
Brexit and the Future of Europe
Jun 27, 2016
The European Union is headed for a disorderly disintegration, and can only be saved if it is reconstructed to satisfy citizens’ needs and aspirations
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Article
How the Brexit Tragedy Challenges Economics
Jun 26, 2016
It would be a tragic mistake to read anti-E.U. sentiment across Europe as simple bigotry — racism and xenophobia are being nurtured by the economic pain produced by prevailing economic policies
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News
CALL FOR PAPERS: Towards Pluralism in Macroeconomics?
Jun 23, 2016
The deadline for submission of paper proposals and complete sessions for the 20th FMM conference is approaching: 30 June 2016. Proposals (extended abstracts, max. 400 words) have to be submitted electronically via this web application. Please find more information in the Call for Papers.
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Video
Understanding China’s Cultural Revolution
Jun 22, 2016
Frank Dikötter explores previously classified Chinese leadership documents, and attempts to set the record straight.
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Article
Brexit's Impact on the World Economy
Jun 21, 2016
Why a British vote to leave the European Union would have consequences far larger than the UK’s proportional share of the global economy might suggest
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Article
In Memoriam, Jack Treynor
Jun 20, 2016
Remarks at a memorial service for pioneering financial analyst Jack Treynor Memorial, MIT Chapel, June 19, 2016
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Article
Economists are Divided over Brexit
Jun 19, 2016
Some predict global economic catastrophe if Britain votes to leave the EU, others foresee a more limited set of consequences — and some see a telling trend in the public ignoring economists’ warnings
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Article
A New Economic Paradigm to Fight Populism
Jun 15, 2016
Globalisation was once considered a doctrine of salvation - but it has produced too many losers and created a breeding ground for heralds of simplistic truths. It is high time for a new doctrine.
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Article
Global Money: A Work in Progress
Jun 12, 2016
A dollar-denominated global economy means the Fed is at once the bankers bank and government bank, as well as both U.S. central bank and global central bank — managing that hybrid is the challenge of our time
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Article
Who's talking about getting fiscal?
Jun 10, 2016
What we’re reading: Recent statements from the IMF and the OECD highlight a growing call for new economic policy thinking in response to the specter of long-term stagnation
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Video
There Is a Way to Stop Machines From Making Americans Poorer
Jun 8, 2016
Technology will ruin America if we don’t compensate for its impact, warns Andy Stern.
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Article
Can Philosophy Stop Bankers From Stealing?
Jun 7, 2016
Pernicious cultural norms inside American banks and regulatory agencies have crowded out fundamental moral principles. Ed Kane proposes an antidote.
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Article
Should we really be 'learning to love' the robots?
Jun 7, 2016
A response to Arjun Jayadev’s argument about the impact of automation on our work and life
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Article
Britain’s EU scorecard, a dissent on China stimulus, and the productivity puzzle
Jun 7, 2016
What we’re reading: A weekly scan of published items relevant to the Institute’s work
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Article
From Keynes to Lucas, and Beyond
Jun 6, 2016
Book review: Michel De Vroey and the problems of macroeconomics
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Article
What we learn about inequality from Carl Icahn’s $2 billion Apple “no brainer”
Jun 6, 2016
The company’s focus on stock buybacks to increase shareholder value is a reminder of why so much of the value created daily by millions of workers ends up in the hands of the billionaires
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Article
How to relax and start loving the robots
Jun 3, 2016
Anxiety over human labor being replaced by cyborgs may be in vogue, but it’s overblown — machines may help us achieve healthier and more meaningful lives
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Article
Rebirth of the School: Why We Invested in the History of Economic Thought Website
Jun 2, 2016
The Institute is proud to welcome the revival of an indispensable resource for those seeking to understand the evolution of economics in context
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Article
How Do Investors Approach the Stock Market in a Wild Election Cycle?
Jun 1, 2016
Neither the Rational Expectations Hypothesis nor behavioral finance approaches alone provides an adequate predictor of investor behavior, argues Roman Frydman
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Article
Profound Changes in Economics Have Made Left vs. Right Debates Irrelevant
May 31, 2016
New economic thinking has the potential to make political debates far more productive
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Article
Learning to think about shadow banking
May 30, 2016
Why most economists did not see the 2008 crash coming
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Article
A Teachable Moment for the Economics Profession?
May 27, 2016
What we’re reading: A weekly scan of published items relevant to the Institute’s work
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Webinars and Events
Shadow Banking and Alternative Finance in China
WorkshopMay 27, 2016
The recent growth in the scale and different forms of shadow banking and alternative finance mechanisms in China poses many questions of understanding, from its sustainability; different forms of credit growth; to the role of local government financing, and; the tensions between financial reform policy and practice.
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Article
Introducing the Symposium on Neoliberalism
May 26, 2016
Is Neoliberalism a fixed set of ideas, or even an identifiable political movement?
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Collection
Neoliberalism
A debate over definitions of Neoliberalism from different historical and philosophical approaches.
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Working Paper
Working Paper SeriesEthics vs. Ethos in US and UK Megabanking
May 2016
Company law in the US and UK fails to acknowledge that authorities’ propensity to rescue giant banks from the consequences of insolvency assigns taxpayers a coerced and badly structured equity stake in too-big-to-fail institutions.
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Article
This is Water (or is it Neoliberalism?)
May 25, 2016
A meditation on Vercelli, Vernengo and Levitt & Seccareccia
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Video
How Neoliberalism Threatens Democracy
May 25, 2016
Professor Wendy Brown engages in an in-depth exploration of the corrosive effect of approaching education, law, politics and governance through the lens of neoliberal economic rationality.
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Working Paper
CommentaryWho is afraid of Neoliberalism? A comment on Mirowski
May 2016
While the Neoliberal movement’s concerns extend into a broad political reorganization of society, it remains intimately connected with neoclassical economic thought.
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Article
Monetary Finance: Mechanics & Complications
May 23, 2016
Eight years after the 2008 crisis the global economy is still stuck with low growth, too low inflation, and rising debt burdens. Massive monetary stimulus has failed to generate adequate demand, and some commentators suggest that we are “out of ammunition” with which to counter deflationary pressures.
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Article
Tunisia in Turmoil: When Supply-Side Orthodoxy Meets an Angry Citizenry
May 23, 2016
Mass protests challenging the government to focus on job-creation rather than on market liberalization and trade deals may carry a cautionary message to Western policy makers, too.
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Article
How the term “mainstream economics” became mainstream: a speculation
May 23, 2016
From 1958 onward, the back cover of Paul Samuelson’s bestselling textbook, Economics, showed a family-tree of economists. The diagram’s evolution, in particular its use of the term “mainstream economics,” reflected, and, I speculate, influenced how economists came to perceive the structure of their discipline.
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Working Paper
CommentaryWho will willingly hold non-interest-bearing money?
May 2016
If the government/CB together finance an increased fiscal deficit with permanent non-interest-bearing fiat money, then some private sector agents have to hold non-interest-bearing monetary base, and must continue to do so even when policy and market interest rates have moved away from the ZLB. How is this possible in an environment where most bank deposit money is potentially interest-bearing?
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Working Paper
CommentaryWhy a money financed stimulus is not offset by an inflation tax
May 2016
In the growing debate about the pros and cons of a monetary financed fiscal stimulus (a.k.a. helicopter money) it is argued by some participants that a money-financed stimulus will have no more effect than a debt financed stimulus since:
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Article
The History of Economic Thought website is reborn
May 21, 2016
I am pleased to announce that the History of Economic Thought Website is back. I am thankful for the assistance of the Institute for New Economic Thinking (INET), which has supported its revival and made it possible.
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Article
Is Wall Street Doing its Job?
May 20, 2016
What we’re reading: A weekly scan of published items relevant to the Institute’s work
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Curriculum Material
History of Economic Thought Website
Spanning centuries, this website concentrates information and resources on the history of economic thought for students, researchers and all those who are interested in learning about economics from a historical perspective.
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Article
How the computer transformed economics. And didn’t.
May 19, 2016
The shift toward applied economics in the last 40 years is usually associated with the development of computers and datasets. Yet, the success of computer-based approaches is highly selective, and what computerization failed to change in economics is equally remarkable.
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Article
Could fiscal policy changes revive US economic growth? Some contributions towards answering that question
May 19, 2016
Renewed interest by policymakers in the challenges of long-term slow economic growth highlights the importance of the Institute’s research
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Working Paper
Working Paper SeriesStock-Market Expectations: Econometric Evidence that both REH and Behavioral Insights Matter
May 2016
Behavioral finance views stock-market investors’ expectations as largely unrelated to fundamental factors. Relying on survey data, this paper presents econometric evidence that fundamentals are a major driver of investors’ expectations.
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Video
Capitalism and the media: Can crowdfunding spare us from bad news?
May 18, 2016
Julia Cage warns that a media ravaged by market forces cannot serve democracy’s need for an informed citizenry.
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Working Paper
CommentaryThoughts on Mirowski and Neoliberalism from a Polanyian Perspective
May 2016
Karl Polanyi demonstrated that Classical Liberalism and current Neoliberalism were organized political movements, but their successes sparked political backlashes against laissez-faire economics — a dialectic that continues to shape politics to this day.
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Article
Neither Clinton nor Trump is engaging with the causes of America’s economic woes
May 17, 2016
Author Rana Foroohar explains why the economic policies being touted by both presidential frontrunners offer none of the new thinking necessary to drive a policy response to revitalize the economy
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Article
Where the SPD and Germany would stand today without Agenda 2010
May 17, 2016
The SPD, the Social Democratic Party of Germany, has been collapsing in the popularity polls ever since they in 2003 launched the reform Agenda. What would have come of the party if it had not been for this insane rush to reform? Possibly Gerhard Schroeder could even still be chancellor today. A case for the time machine.
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Article
Debate: How is the Greek rescue package being spent?
May 17, 2016
Despite using different methodologies, a number of scholars agree that most of the ‘bailout’ money is going to Greece’s foreign creditors
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Working Paper
CommentaryOn Neoliberalism: Comments to Mirowski
May 2016
The following is based on Chapter 1 of my forthcoming book, Crisis and Sustainability. The Delusion of Free Markets.
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Article
Independence vs. Accountability in the Evolution of the Fed
May 16, 2016
Peter Conti Brown’s new book explores and debunks a powerful meme shaping public understanding of the role of the Fed
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Article
Should the state be doing more to fix the economy?
May 13, 2016
What we’re reading: A weekly scan of published items relevant to the Institute’s work
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Article
Improving the Teaching of Econometrics
May 12, 2016
A major shift is needed in the Econometrics curriculum for both graduate and undergraduate teaching to include modern topics.
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Article
A Global Marshall Plan for Joblessness?
May 11, 2016
The corrosive social and economic effects of what have now become ‘normal’ unemployment levels require new solutions, and tradewithout full employment exacerbates the problem
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Article
Helicopter Money on a Leash?
May 10, 2016
Any use of money-financed fiscal expansion as a policy tool will require rules to ensure discipline and avoid excess
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Article
Shadow banking’s enduring perils
May 9, 2016
Five lessons from the last crisis — for managing the next one
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Article
Austerity without debt relief courts new unrest in Greece
May 9, 2016
Economist James K. Galbraith warns that ‘unrealistic expectations’ by Athens’ creditors is a recipe for turmoil
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Article
Minimum Wages & Job Loss
May 6, 2016
As empirical evidence continues to roll in, can the theoretical orthodoxy continue to hold their ground?
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Article
A Press That Serves the People in a Capitalist Society?
May 5, 2016
A new book by economist Julia Cagé offers a participatory business model for independent media.
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Video
The Discreet Charm of the Bourgeoisie?
May 4, 2016
McCloskey discusses the thesis of her recent trilogy, The Bourgeois Era, which holds that the driving force of economic growth in 17th and 18th century Europe was simply liberal ideas.
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Webinars and Events
Future of Work Industry 4.0 and the Pursuit of Social Innovation
ConferenceMay 4, 2016
Does the technology revolution require a new social policy?
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Working Paper
Working Paper SeriesOn Historical Household Budgets
May 2016
The paper argues that household budgets are the best starting point for investigating a number of big questions related to the evolution of the living standards during the last two-three centuries.
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Article
The Unfairness of Housing Purchases Through Time
Apr 29, 2016
Amid the ongoing research interest in questions of inequality, it is important to examine the question of access to housing — and how that has changed over the decades. The specific question I have sought to answer, here, is whether the real cost (measured against income) of buying the average home has risen.
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Article
Varoufakis: Star Trek or The Matrix?
Apr 27, 2016
Capitalism will destroy itself, the former Greek finance minister warns, if economic calculation excludes human needs and ignores democratic verdicts
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Video
Equity and Growth Through Knowledge Based Economies
Apr 26, 2016
Benner’s recent work with Manuel Pastor suggests the somewhat counterintuitive result that geographic regions with the most equitable distributions of wealth and influence also tend to have the highest growth.
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Article
Keynes passed away 70 years ago today – his copyright follows
Apr 21, 2016
Keynes passed away 70 years ago today, with his copyright now expiring, there is an opportunity to build a digital archive of all his work
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Article
Why Liberal Economists Dish Out Despair
Apr 20, 2016
Orthodox macroeconomics has become a place where visions die and hopes are banished, for both liberals and conservatives.
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Article
When Economists Attack
Apr 20, 2016
How Gerald Friedman’s assessment of Bernie Sanders economic proposals prompted a rare public political spat among economists.
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Article
The Road not Taken
Apr 19, 2016
Axel Leijonhufvud showed economists a promising path forward. They should have taken it. Leijonhufvud passed away on May 5, 2022
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Article
Three Questions with Dean Corbae
Apr 19, 2016
Dean Corbae is a leader of the Markets network and Professor of Finance, Investment, and Banking at the Wisconsin School of Business, where he also holds an appointment in the Department of Economics. His current research focuses on consumer credit and bankruptcy, foreclosures, and banking industry dynamics.
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Article
The Rise Of The Right-Wing Populist: Back In The Court Of The Banks
Apr 18, 2016
Contrary to common belief, this shift is not so much caused by the refugee crisis, but rather by the historical disaster that followed the big financial crisis since 2007.
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Article
Twitter and the Stock News Echo Chamber that Whips up Volatility
Apr 17, 2016
Anyone watching the stock market has seen this: a post hits Twitter containing old news, and investors react as if it were new.
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Article
Towards a theory of shadow money
Apr 14, 2016
Struggles over shadow money today echo 19th century struggles over bank deposits.
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Article
The Global Consumption and Income Project
Apr 14, 2016
We have developed over a number of years and now make publicly available a new and unprecedented data resource for understanding levels of living, poverty, inequality and inclusivity of growth and development around the world.
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Working Paper
Grantee paperTowards a theory of shadow money
Apr 2016
What does the rise of shadow banking mean for monetary theory and practice? (How) should we change our traditional theories of money to capture the complex practices through which money is created in modern financial systems?
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Video
How do we prevent future financial crisis in emerging markets?
Apr 12, 2016
Should policymakers rely on domestic macroprudential regulation in their quest for greater financial stability?
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Article
Instability & Stagnation in a Monetary Union
Apr 11, 2016
The intra-EMU divergences are a feature of the system rather than just a bug.
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Article
Can ‘matching markets’ concept help Europe manage its refugee crisis?
Apr 11, 2016
European Union countries are facing an epic challenge of integrating more than 1 million refugees from conflict zones in the Middle East and beyond.
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Article
We Stopped Pfizer’s Tax Dodge, Now Let’s End the Buybacks
Apr 8, 2016
Industrial journalist Ken Jacobson and economist William Lazonick (both of the Academic-Industry Research Network), call for an end to stock market manipulation through buybacks.
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Article
In EU budget debates, ‘technocratic’ veil hides political choices
Apr 8, 2016
As the European Union Commission readies itself for a new round of budgetary recommendations, INET senior economist Orsola Costantini warns that that the debate over how those harsh fiscal constraints are to be determined is based on a formula that masks political choices as technocratic imperatives.
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Article
Three Questions with John Eric Humphries
Apr 7, 2016
John Eric Humphries is a member of the Inequality: Measurement, Interpretation, and Policy (MIP) network and a National Science Foundation Graduate Research Fellow in the Department of Economics at the University of Chicago. He is the co-author of the book, The Myth of Achievement Tests, The GED and the Role of Character in American Life, along with James J. Heckman and Tim Kautz. Humphries is also a 2013 alum of the Summer School on Socieconomic Inequality.
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Article
Panama: Cheating “Epidemic” Crowds Out Honest Business, Implicates Banks
Apr 6, 2016
Leading expert says Iceland is showing the way on tackling a global peril.
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Article
The Panama Papers: A Tropical Tip of the Hidden Wealth Iceberg
Apr 5, 2016
When billionaires pay less, we all pay more.
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Article
What Happens When America’s Kids Confront Extreme Inequality?
Apr 5, 2016
A new film shows what economic apartheid looks like through the eyes of schoolchildren.
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Article
When Things Fall Apart
Apr 4, 2016
Democratic capitalism is an evolving system that responds to crises by radically transforming both economic relations and political institutions. The time for a new phase has come, regardless of whether “responsible” politicians are prepared to admit it.
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Webinars and Events
Oil, Middle East, and the Global Economy
ConferenceMar 31–Apr 1, 2016
Featuring sessions on Oil Shock and the Global Economy, Sovereign Wealth Funds, and the Political Economy of Oil.
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Article
Blanchard, the NAIRU, and Economic Policy in the Eurozone
Mar 31, 2016
A recent policy brief by Blanchard (2016), based on an earlier paper (Blanchard, Cerutti, Summers 2015) raises a number of interesting points concerning the NAIRU and the Phillips Curve, which are further discussed in the comment on the paper by Ball (2015).
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Working Paper
Working Paper SeriesLuigi Pasinetti and the Political Economy of Growth and Distribution
Mar 2016
This paper provides a careful and synthetic overview of his contributions as well as a reconstruction of Pasinetti’s philosophical approach to economics as a science meant to serve humanity.
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Working Paper
Working Paper SeriesA Method for Agent-Based Models Validation
Mar 2016
This paper proposes a new method to empirically validate simulation models that generate artificial time series data comparable with real-world data.
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Working Paper
Working Paper SeriesCarbon Emissions and Economic Growth: Production-based versus Consumption-based Evidence on Decoupling
Mar 2016
We assess the Carbon-Kuznets-Curve hypothesis using internationally consistent and comparable production-based versus consumption-based CO2 emissions data for 40 countries (and 35 industries) during 1995-2007 from the World Input Output Database (WIOD).
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Article
A Wake-Up Call on Climate Change and Clean Energy
Mar 30, 2016
A stark warning from Institute researchers on the probability that ‘2°C capital stock’ will be reached in 2017
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Video
China’s Coming Debt Crisis?
Mar 22, 2016
The condition of the Chinese economy is increasingly becoming a significant factor exorcising the minds of global policy makers.
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Article
Understanding the Great Recession
Mar 22, 2016
Some fundamental Keynesian and Post-Keynesian insights, with an analysis of possible mechanisms to achieve a sustained recovery.
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Webinars and Events
New Economic Thinkers Transforming Our World
DiscussionMakers and Takers in the Political Season | A conversation with Rana Foroohar
Mar 20, 2016
The Institute for New Economic Thinking hosts an exclusive luncheon and conversation with Lynn Parramore, Senior Research Analyst at the Institute and Reuters columnist, and Rana Foroohar, TIME Assistant Managing Editor and Economic Columnist, and Global Economic Correspondent at CNN.