Archive
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Video
Income Inequality in Europe
Apr 19, 2015
A member of the Austrian Central Bank tells us his research on wealth and income inequality in Europe.
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Working Paper
Working paperDiscrimination, Social Identity, and Coordination: An Experiment
Apr 2015
This paper presents an experiment investigating the effect of social identity on hiring decisions. The question is whether people discriminate between own and other group candidate
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Working Paper
Working Paper SeriesAn Economical Business-Cycle Model
Apr 2015
In recent decades, advanced economies have experienced low and stable inflation and long periods of liquidity trap. We construct an alternative business-cycle model capturing these two features by adding two assumptions to a money-in-the-utility-function model: the labor market is subject to matching frictions, and real wealth enters the utility function. These assumptions modify the two core equations of the standard New Keynesian model
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Video
Greece and the Eurozone
Apr 14, 2015
Yanis Varoufakis and Joseph Stiglitz discuss Greece’s financial challenges and the associated Eurozone politics in this exclusive conversation.
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Article
How to Recognize New Economic Thinking
Apr 14, 2015
The Institute for New Economic Thinking responds to an evident need for innovative approaches to understanding economic and financial processes.
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Article
We Must Lean Over Backwards
Apr 14, 2015
Emulate Richard Feynman: Lean over backwards so you do not fool yourself, and teach your students the discipline correctly from the start, rather than teaching them things at the start you will have to unteach them later.
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Article
Party Competition to Cut the Government Deficit by More in the UK's General Election
Apr 14, 2015
At least the Labour Party has only promised to cut day-to-day spending, not public investment.
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Video
Upholding the Rule of Law
Apr 13, 2015
Here we are, some 7 years after the Great Financial Crisis, and not one senior banking executive has gone to jail.
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Article
New Economic Thinking vs. Hard Political Realities
Apr 13, 2015
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Article
False Economic Policy Clichés and General Elections
Apr 13, 2015
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Article
Is the Fed Making Inequality Worse? Yes, New Research Shows.
Apr 11, 2015
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Working Paper
Conference paperA New Rational Expectations Hypothesis: What Can Economists Really Know About the Future?
Apr 2015
John Muth proposed the Rational Expectations Hypothesis (REH) to represent how the market (an aggregate of its participants) understands and forecasts outcomes. REH imposes internal consistency between the market’s forecasts and “the relevant economic theory” (Muth 1961, p. 316).
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Working Paper
Conference paperChange of Course: a Journalist’s Perspective
Apr 2015
I first came across economics students’ campaigns to revolutionise their education in that bastion of radical thought: the newsroom of the Financial Times.
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Conference Session
George Soros on the Future of Europe
Apr 10, 2015 | 03:30
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Working Paper
Conference paperFrom Terrible to Terrific Undergraduate Economics Curricula
Apr 2015
Among the areas left largely unscathed by the 2008 financial crisis and subsequent never-‐ending recession, the teaching of economics ranks high.
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Working Paper
Conference paperThe Eurozone crisis: A debt shortage as the final cause
Apr 2015
This paper proposes a different interpretation of the Eurozone crisis, seeing as its “final” cause European policies which have forced private savings down too low.
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Working Paper
Conference paperWhat's Wrong With Economics?
Apr 2015
Hubris might well head the list
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Conference Session
The Eurozone Crisis: Fiscal Profligacy Or Capital Flows As Final Causes
Apr 10, 2015 | 06:30—08:00
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Conference Session
Ukraine & The Future of Europe
Apr 10, 2015 | 08:00—08:30
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Conference Session
Durable Inequality and Individual Differences in Capacities and Behavior
Apr 10, 2015 | 06:15—07:45
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Conference Session
Teaching Economics
Apr 10, 2015 | 07:00—08:30
This panel covers the teaching of economics at the university level.
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Conference Session
Finance, Sustainability and the Environment
Apr 10, 2015 | 07:15—08:45
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Conference Session
Economics Curriculum for Activists
Apr 10, 2015 | 06:00—07:30
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Working Paper
Conference paperAusteritarianism in Europe: What Options for Resistance?
Apr 2015
In much of Europe, the social rights and social protections won in the first post-war decades, by labour movements in particular, have subsequently been seriously eroded, and are further threatened by neoliberal austerity.
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Working Paper
Conference paperEmbedding GroupThink
Apr 2015
This memo outlines key concepts and the methodological approach involved in a recently funded Institute for New Economic Thinking project. Our aim is to pinpoint the relationship between the reception of academic ideas, traced by citation networks with qualitative coding, and positions of institutional and political power.
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Working Paper
Conference paperReflexivity, expectations feedback and almost self-fulfilling equilibria: economic theory, empirical evidence and laboratory experiments
Apr 2015
We discuss recent work on bounded rationality and learning in relation to Soros’ principle of reflexivity and stress the empirical importance of non-rational, almost self-fulfilling equilibria in positive feedback systems.
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Working Paper
Conference paperLinking Individual and Community Economic Mobility: The Spatial Foundations of Persistent Inequality in the United States
Apr 2015
Considerable academic and public attention has been drawn to the pulling away of the very rich—the so-called “one percent” whose gains have far outpaced those of everyone else (Piketty 2014). But the debate has reached well beyond the very top, especially in the United States.Indeed, the hollowing out of the middle class, continuing stagnation of wages, and new evidence on the lack of upward mobility across generations all strike at the very heart of the American ideal.
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Working Paper
Conference paperItaly's Crisis: Neither Fiscal Profligacy nor Capital Flows
Apr 2015
Italy was one of the worst hit during the 2007–2009 global financial crisis (GFC) among the major advanced economies. By year-end 2009, Italy’s economy had contracted by 6.6 percent; significantly larger than the recessions in the euro zone and the United States, for example, which saw their GDPs shrink by 4.4 and 3.1 percent, respectively.
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Working Paper
Conference paperReviving Debate In Economics: Motivations and Methods of the International Student Movement
Apr 2015
In the past three years, students around the world have turned the heat of scrutiny onto our economics departments. Our call is strikingly uniform across our diverse cultures and languages: we want critical debate back in the economics curriculum.
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Article
Herr Schauble’s Foibles: The Eurozone Rebalancing Conundrum
Apr 10, 2015
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Conference Session
How Did Bad Economics Crowd Out Good Economics? Evidence from Citation Analysis
Apr 10, 2015 | 06:45—08:15
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Working Paper
Conference paperHow Money Drives US Congressional Elections: More Evidence
Apr 2015
“Because many interests come into play in the financing of an election campaign and then they ask you to pay back. So the election campaign should be independent from anyone who may finance it.” - Pope Francis
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Working Paper
Conference paperGordian knot: A panoramic perspective on stemming illicit financial flows from Africa
Apr 2015
Pushing this strand of research brings a certain feeling of trepidation. It comes from recognizing that by openly elaborating on how to catch or deter a criminal, you thereby confer an undue advantage on the criminal through forewarning.
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Working Paper
Conference paperTowards a Sovereign Debt Restructuring Framework
Apr 2015
Initiatives to improve sovereign debt restructuring (“SDR”) began long before recent Argentine bond decisions but were redoubled in the aftermath of these rulings. At first glance, these cases identify problematic contract language that could be rectified by re-drafting critical boilerplate provisions such as the pari passu and collective action clauses (“CAC”).
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Working Paper
Conference paperThe Prince('s) Rules: Economic Theories and Political Struggle in Europe.
Apr 2015
The Cyclically Adjusted Budget (CAB) is the estimated size of the public budget at some previously defined level of output which may represent the ‘normal’ output or a policy target and that usually is considered to be unaffected by business fluctuations or cycles. Such an estimate is supposed to isolate the automatic movements of revenues and expenditures, given the current structure of tax and transfers, from discretionary fiscal interventions and indicate the “impact” and sustainability of fiscal action.
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Working Paper
Conference paperSocial investment for inclusive growth: a Southern European perspective
Apr 2015
Inequality has emerged as a major economic issue: sharp increases in the share of income going to those at the very top of the income distribution, a rising share of income going to profits, stagnant real wages, and a fall in median family income have raised concern over the sustainability of our economies and societies.
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Working Paper
Conference paperCapital Flight from Africa and Development Inequality: Domestic and Global Dimensions
Apr 2015
Over the past decades African economies have exhibited two stunning paradoxes: growth acceleration coexisting with stubbornly high poverty rates; increasing capital flight along with widening development financing gaps. There has been no attempt to link the two in the literature.
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Working Paper
Conference paperGoethe’s Faust and the socioeconomic roots of modern subjectivity
Apr 2015
The modern individual is the point of intersection of the processes of consumption and production. The subjective representation of these processes has been determined by two branches of the modern middle class, the bourgeoisie, which has privileged consumption, and the bureaucracy, which has privileged production.
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Working Paper
Conference paperTwisting the economic tale: what literature can do that political economy can’t
Apr 2015
This paper will address the problem of how we might gain economic understanding from literature. It will look at the aesthetic form of literature as being an efficient vehicle for economic thinking.
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Conference Session
Challenging Economic Injustice Through Literature
Apr 9, 2015 | 10:15—11:45
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Conference Session
Political Institutions & Inequality
Apr 9, 2015 | 11:00—12:30
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Conference Session
The Problem of Capital Flight
Apr 9, 2015 | 11:30—01:00
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Conference Session
Macroeconomic Externalities
Apr 9, 2015 | 12:15—01:45
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Working Paper
Conference paperInformation and Economics: A New Way to Think About Expectations and to Improve Economic Prediction.
Apr 2015
The largely unexpected arrival of the global economic crisis and the largely unpredicted slowness of the recovery from the Great Recession should be precipitating an intellectual crisis across economics and policy making. We require additional theories and additional methods to detect how an economy is evolving and to provide the basis for policy intervention (Haldane, 2014).
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Working Paper
Conference paperTwo Paths to War: The Origins of the First World War versus the Dynamics of Contemporary Sino-American Confrontations
Apr 2015
During the past year, there have been numerous and somber reflections, rather like those during a traditional period of mourning, about the great and tragic events that occurred just 100 years ago – the beginning of the First World War. And in the course of these melancholy reflections about the past, there naturally have arisen anxious concerns about the future.
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Working Paper
Conference paperHow the Planned Perversion of Democracy generated accelerating inequalities
Apr 2015
What is at stake : Increasing doubt over the virtue of democracy. One cannot doubt the ubiquitous lack of confidence and hope in the so-called democratic institutions by a large majority of the people. The fundamental cause is the blatant contradiction between the principle of democracy, promoting the rule and thereby the welfare of the people, and the indomitable tendency of rising and unsustainable inequality in terms of income, standard of living and wealth.
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Working Paper
Conference paperSocial Interaction Models and Keynes' Macroeconomics
Apr 2015
The central concepts of Keynes’ macroeconomic theories concerning the behavior of labor markets, aggregate demand, and asset pricing can be formulated as special cases of a general social interaction model.
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Conference Session
Occupy? Strike? Separatism? Populism? Are Any Of The Historical Forms Of Protest Effective In The Information Age?
Apr 9, 2015 | 07:15—08:45
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Conference Session
Information And Economics: How Should Expectations Be Modeled? What Actually Works?
Apr 9, 2015 | 10:45—12:15
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Conference Session
Northeast Asia: The Balkans of the 21st Century?
Apr 9, 2015 | 09:15—10:45
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Conference Session
Financial Networks, Financial Innovation & Inequality
Apr 9, 2015 | 10:30—12:00
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Conference Session
Sovereign Debt Restructuring
Apr 9, 2015 | 10:00—11:30
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Working Paper
Conference paperPerverse and virtuous feedbacks between inequality and innovation: Which role for public institutions and public investment?
Apr 2015
In this paper, we deal with the complex relationship connecting inequality to innovation, and the ways through which public investment, in particular public participation to R&D initiatives, may affect it. We first stress that multiple different equilibria may exist in the inequality-innovation space.
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Working Paper
Conference paperTop incomes and the glass ceiling
Apr 2015
This paper studies the glass ceiling by analyzing the presence of women at the top of the income distribution using tax record data reported for a sample of countries with individual taxation.
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Working Paper
Conference paperBoard Gender Diversity, Audit Fees and Auditor Choice
Apr 2015
Using a sample of U.S. firms spanning 2001-2011, we examine whether female directors (female audit committee members) affect audit quality in terms of audit effort and auditor choice.
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Conference Session
Gender & Inequality: The Glass Ceiling In International Perspective
Apr 9, 2015 | 06:30—08:00
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Conference Session
The New Politics of Central Banking
Apr 9, 2015 | 07:00—08:30
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Conference Session
Stimulating Innovation & Growth
Apr 9, 2015 | 06:45—08:15
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Conference Session
Inequality, Innovation, and Public Investment
Apr 9, 2015 | 06:15—07:45
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Working Paper
Conference paperPseudo-wealth Fluctuations and Aggregate Demand Effects
Apr 2015
This paper presents a theory of pseudo-wealth in a model that displays aggregate demand externalities.
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Working Paper
Conference paperThe New York Times and American Tax Policy: Representing Citizens or Echoing Elites?
Apr 2015
A recent New York Times article observed that Americans want action to address inequality. 2016 presidential candidates from both parties also acknowledge that inequality is a pressing concern. But not one of the candidates has proposed to do anything meaningful about it, sharing wealthy Americans’ (understandable) opposition to any solution (Scheiber 2015). Perhaps nothing has been done because there is nothing to do about it.
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Working Paper
Conference paperLabour in Europe’s crisis.
Apr 2015
A structural transformation is investing labour in Europe, accelerated by the crisis started in 2008. Job destruction is dominating employment trends in most EU countries and deep changes are taking place in labour relations, labour market institutions and wage regimes.
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Working Paper
Conference paperLeveraging the network: a stress-test framework based on DebtRank
Apr 2015
We develop a novel stress-test framework to monitor systemic risk in financial systems. The modular structure of the framework allows to accommodate for a variety of shock scenarios, methods to estimate interbank exposures and mechanisms of distress propagation.
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Working Paper
Conference paperSevering the Innovation-Inequality Link: Distribution Sensitive Science, Technology and Innovation Policies in Developed Nations
Apr 2015
Innovation is essential to economic growth. However, it appears that the ways in which we pursue innovation policies have aggravated inequality. Inequality is an increasingly contentious political issue in both wealthy and emerging economies.
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Working Paper
Conference paperAnarchic East Asia on an American Tether—and Cushion
Apr 2015
“Oh, the Chinese hate the Japanese and the Japanese hate the Chinese—to hate all but the right folks is an old established rule. The Koreans hate the Japanese and the Vietnamese hate the Chinese, and the North Koreans hate them all. Oh, the People hate the Communists and the Communists hate the People. The Nationalists hate the Communists and the Communists hate themselves. The Confucians hate the Buddhists and the Muslims hate them all. All of my folks hate all of your folks. But during National Brotherhood Week, be nice to people who are inferior to you. It’s only for a week, so have no fear—be grateful that it doesn’t last all year.”
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Conference Session
National Strategies, Value Creation, Income Distribution, and the Structure of Careers
Apr 9, 2015 | 06:00—07:30
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Article
Marxian Economics: The Oldest Systems Theory Is New Again (or Always?)
Apr 9, 2015
The best new economic thinking in an age of the dominance of rent-seeking will be Marxian economic thinking
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Article
Learning from Karl Polanyi
Apr 9, 2015
The old political-economic thinking of Karl Polanyi was never properly absorbed into “mainstream” North Atlantic economics: recognizing that land, labor, and finance are not really “commodities” returns institutions and social processes to the center of economic analysis.
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Article
Inequality or Living Standards: Which Matters More?
Apr 9, 2015
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Working Paper
Conference paperIncome Distribution, Rentiers and their Role in a Capitalist Economy: A Keynes-Pasinetti Perspective
Apr 2015
This paper finds its origins in two important developments within mainstream economics since the financial crisis, both of which analyze the economy from the viewpoint of what Schumpeter (1954) referred to as the domain of “real” analysis of a modern market economy in contrast to “monetary” analysis.
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Working Paper
Conference paperCaring Economics
Apr 2015
Caring Economics is about a new way of thinking about human prosperity. In mainstream economics, prosperity is a matter of consumption, income and wealth. By contrast, Caring Economics conceives of prosperity in terms of deeper sources of durable human wellbeing.
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Working Paper
Conference paperFAQs about “GWAS of 126,559 individuals identifies genetic variants associated with educational attainment”
Apr 2015
The SSGAC is a research infrastructure designed to stimulate dialogue and cooperation between medical researchers and social scientists. The SSGAC facilitates collaborative research that seeks to identify associations between specific genetic markers (segments of DNA) and behavioral traits, such as preferences, personality and social-science outcomes.
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Working Paper
Conference paperThe Fourth Law of Behavior Genetics
Apr 2015
Behavior genetics is the study of the relationship between genetic variation and psychological traits. Turkheimer (2000) proposed “Three Laws of Behavior Genetics” based on empirical regularities observed in studies of twins and other kinships. On the basis of molecular studies that have measured DNA variation directly, we propose a Fourth Law of Behavior Genetics: “A typical human behavioral trait is associated with very many genetic variants, each of which accounts for a very small percentage of the behavioral variability.”
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Working Paper
Conference paperCentral banks and distribution
Apr 2015
Income and wealth inequality have been rising in the past three decades. Surprisingly, inequality has been largely ignored in the literature and practice of monetary policy. However, due to the crisis, this question has been gaining more attention.
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Working Paper
Conference paperDistributional Considerations in Climate Change Mitigation: Policy Design as if the Present Generation Matters
Apr 2015
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Conference Session
The Capital Account, Savings Gluts, and Global Imbalances
Apr 8, 2015 | 07:00—07:30
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Conference Session
Budget Deficits, Austerity and Deflation
Apr 8, 2015 | 07:15—07:40
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Conference Session
Central Banks & Distribution
Apr 8, 2015 | 10:00—10:30
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Conference Session
Inequality and Climate Change
Apr 8, 2015 | 10:15—10:30
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Working Paper
Conference paperThe Value of Political Connections in Fascist Italy — Stock Market Returns and Corporate Networks
Apr 2015
Recent years have witnessed the flourishing of a body of economic literature concerned with the search for empirical evidence of a positive relation between political connections, economic rent and the value of firms. The present paper contributes to the strand of this literature that deals with the quantitative measurement of the value of the political connections of firms.
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Working Paper
Conference paperFinancial Regulation That Might Have a Chance of Working
Apr 2015
Regulation of financial services has been an unmitigated policy disaster.
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Working Paper
Conference paperThe international monetary and financial system: its Achilles heel and what to do about it
Apr 2015
This essay argues that the Achilles heel of the international monetary and financial system is that it amplifies the “excess financial elasticity” of domestic policy regimes, ie it exacerbates their inability to prevent the build-up of financial imbalances, or outsize financial cycles, that lead to serious financial crises and macroeconomic dislocations.
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Working Paper
Conference paperGlobal Crises, Equalizing and Dis-equalizing Capitalist Regimes: The Case of 20th Century Asian Political Economy
Apr 2015
The logic of deep global capitalist crises needs to be incorporated centrally into an understanding of the changes in the within-country inequality levels. I present a theoretical framework that incorporates two levels of political economic processes. First,global capitalist crises lead to the creation of an institutional structure or a regime in the capitalist centers that influences inequality in these core countries and in the periphery. Second the class configuration in the non-core countries - a set of institutional arrangements that can be termed local political economy - also plays a key role in determining inequality outcomes.
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Working Paper
Conference paperGlobal Income Distribution: From the Fall of the Berlin Wall to the Great Recession
Apr 2015
The paper presents a newly compiled and improved database of national household surveys between 1988 and 2008. In 2008, the global Gini index is around 70.5 percent having declined by approximately 2 Gini points over this twenty year period. When it is adjusted for the likely under-reporting of top incomes in surveys by using the gap between national accounts consumption and survey means in combination with a Pareto-type imputation of the upper tail, the estimate is a much higher global Gini of almost 76 percent.
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Working Paper
Conference paperToo much saving... or too few financing channels?
Apr 2015
The global financial crisis led to widespread dislocation. Understanding the forces that led to such a crisis is no easy matter.
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Working Paper
Conference paperA strategy change for Europe is needed
Apr 2015
Ten hypotheses presented in the session “Beyond Deficits, Austerity and Deflation” at INET Conference 201
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Conference Session
Yanis Varoufakis Interviewed by Joseph Stiglitz
Apr 8, 2015 | 09:15—10:00
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Working Paper
Conference paperUnpacking and Reorienting Executive Subcultures of Modern Finance
Apr 2015
Recent weeks have surfaced an intense exchange of top-level finger pointing, both between Congress and the leadership of the Federal Reserve System, between Fed officials and executives in the private sector and within the Fed between the Board of Governors and the New York Reserve Bank.
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Working Paper
Conference paperInequality: A Neuroscience Perspective
Apr 2015
It is impossible to ignore material inequality. Wealth, and the goods that come with it, are accumulating at the top of society while others seem to be struggling in the middle and bottom.
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Working Paper
Conference paperPromoting bank stability through compensation reform: lessons from Iceland
Apr 2015
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Conference Session
History and the Theory Of Income Distribution: Some Perspectives
Apr 8, 2015 | 11:00—11:30
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Conference Session
Financial Regulation That Might Have a Chance of Working
Apr 8, 2015 | 10:45—11:15
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Conference Session
Motivations, Emotions, Decisions
Apr 8, 2015 | 11:15—12:45
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Working Paper
Conference paperInequality, the crisis, and stagnation
Apr 2015
The inequality of income and wealth is one of the defining issues of our time, in terms of both its social and macroeconomic implications. In this article, I focus on the macroeconomic implications of inequality. In particular, it is possible to identify four themes on which there seems to be growing consensus among many economists especially in the various heterodox traditions, but also increasingly in the mainstream of the economics profession:
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Conference Session
Politics by Other Means? Eurozone Institutions and National Sovereignty in the Bank Bailout Negotiations
Apr 8, 2015 | 06:15—06:45
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Conference Session
Analyzing Growth & Inequality in the 21st Century
Apr 8, 2015 | 06:45—07:15
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Conference Session
Macroeconomic Causes of Inequality
Apr 8, 2015 | 06:30—07:00
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Working Paper
Working Paper SeriesHave Large Scale Asset Purchases Increased Bank Profits?
Apr 2015
This paper empirically examines the effects of the Federal Reserve’s Large Scale Asset Purchases (LSAP) on bank profits.
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Conference Session
Inequality: Claims about Genes
Apr 8, 2015 | 10:30—11:00
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Conference Session
Economic Growth & Inequality across Time & Space: Where Has Growth Lead to Equality and Why?
Apr 8, 2015 | 06:00—06:30