Government & Politics
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Bracing for Trumponomics
Nov 29, 2016
What we’re reading: Some analysts expect dramatic changes and a short-term boost to the US economy, others predict continuity — and see Trump’s election reflecting a sea change in the global order
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India: Demonetization and its Discontents
Nov 28, 2016
By suddenly eliminating two widely used bank notes, India’s government risks undermining public confidence in the basic means of exchange
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Trump Election and the Future of U.S. Global Leadership
Nov 28, 2016
Surviving the geopolitical and economic challenges of the coming years requires a world order less vulnerable to the vagaries of U.S. elections
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Trumpism Has Dealt a Mortal Blow to Orthodox Economics and ‘Social Science’
Nov 23, 2016
How orthodox economics paved the way for the political shocks of 2016
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Economists and Trump: Straight Talk on Trade
Nov 20, 2016
By suppressing important questions in favor of being cheerleaders for globalization, economists failed to influence the public conversation
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Why is Economics Still Largely a White Male Preserve?
Nov 17, 2016
How economics underperforms in diversity, and some potential remedies
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Trade Liberalization After the U.S. Election
Nov 16, 2016
The TPP is dead, as is the assumption that future free-trade agreements can be negotiated by experts alone
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Why Economic Recovery Requires Rethinking Capitalism
Nov 15, 2016
Mission-oriented public investment is vital to spur a revival of private-sector investment
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Lazonick links stock buybacks to America’s jobs challenge
Nov 4, 2016
In an Al Jazeera documentary “In Search of the Great American Job”, Institute scholar William Lazonick offers some arch insights into the relationship between financialization — particularly the “shareholder value” ideology in corporations, which drives the transfer of profits to shareholders through stock buybacks — and job creation and inequality.
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The World Economy’s Growing Debt Burden
Nov 2, 2016 | 04:00—05:30
A conversation with Richard Vague, Managing Partner at Gabriel Investments and Chairman of the Governor’s Woods Foundation.
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Working Paper Series
The EuroZone “Debt” Crisis: Another “Center” – “Periphery” Crisis Under Financial Globalization?
Nov 2016
This paper analyzes the Euro crisis in light of the experience of center-periphery relations over the last 40 years of renewed financial globalization.
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Inequality As Policy: Selective Trade Protectionism Favors Higher Earners
Oct 27, 2016
Offshoring manufacturing may have hurt many working people in America, but professionals and intellectual property have been robustly protected
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Yellen Challenges Economists Amid Elusive Great Recovery
Oct 24, 2016
Like the Great Depression and the stagflation of the ’70s, the anemic growth of the U.S. economy can’t be understood or remedied without changes in economists’ thinking
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Clinton Likely to Win, But Struggle in 2020 Unless She Changes Course
Oct 20, 2016
Institute for New Economic Thinking President Robert Johnson, in an appearance of the CNN International show Quest Means Business, warns that the anger of Trump’s supporters is unlikely to ebb absent significant economic and political changes — and that this anger could be more successfully marshaled by a more skilled and sophisticated Republican challenger four years from now.
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Working Paper Series
The Personal Wealth Interests of Politicians and the Stabilization of Financial Markets
Oct 2016
We examine whether personal wealth interests affect politicians’ decisions about stabilizing financial markets.
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Piecing Together a Paradigm
YSI Plenary
YSI
ConferenceOct 19–22, 2016
New approaches are being developed, but efforts are fragmented and need to be brought together if we hope to piece together a paradigm.
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Here’s What Economists Don’t Understand About Race
Oct 18, 2016
William Darity, Jr. has a new key to unlocking the mystery of inequality: stratification economics.
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Unemployment Insurance Extension During Great Recession Did Not Destroy Jobs
Oct 13, 2016
Social safety nets don’t always need to come with a dark side
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Investigating ‘Secular Stagnation’
Oct 13, 2016
Institute for New Economic Thinking launches a far-reaching research effort into causes and potential remedies for the low-to-no-growth malaise afflicting many of the world’s leading economies
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New Nationalist Challenges to Globalization: The Good, Bad, and Ugly
Oct 13, 2016 | 06:00—07:30
A conversation with Robert Johnson, President of the Institute for New Economic Thinking, former Managing Director for Soros Fund Management and former Chief Economist of the US Senate Banking Committee.
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The Dangers of Financialization
Oct 10, 2016
The financial system no longer funds new ideas and projects — only about 15 percent of the money coming out of financial institutions goes into business investment; the rest is spent buying and selling existing financial instruments.
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Getting to Grips with the Trump Phenomenon
Oct 5, 2016
The media has failed ask basic questions about the economic thinking — and business record — of Republican presidential nominee Donald Trump, says Pulitzer-prize-winning journalist David Cay Johnston, author of The Making of Donald Trump.
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Commentary
The “Natural” Interest Rate and Secular Stagnation: Loanable Funds Macro Models Don’t Fit the Data
Oct 2016
The main point of this paper is that loanable funds macroeconomic models with their “natural” interest rate don’t fit with modern institutions and data. Before getting into the numbers, it makes sense to describe the models and how to think about macroeconomics in the first place.
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Johnson: The Fed is losing its aura of expertise
Sep 30, 2016
Past failures, present uncertainty, and a challenging political environment have vastly complicated the central bank’s task, says Institute President Rob Johnson
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The Nobel Prize in Economics: Time for a Return to Social Democracy
Sep 26, 2016
An award created as a concession to market-minded bankers needs to recognize the centrality of social-democratic policies to the wellbeing of industrialized economies
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How economic policy drives European (dis)integration
Sep 22, 2016
The Eurozone is (quietly) disintegrating as ‘core’ and ‘periphery’ countries continue on paths of economic divergence. That disintegration is reinforced by self-defeating policies shaped by a macroeconomic model that mimics and reinforces the divisions between ‘winners’ and ‘losers’
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The Outlook for the Global Economy
Sep 22, 2016 | 06:00—07:30
An exclusive conversation with Richard Batley, Head of Macroeconomics at Lombard Street Research.
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The Private Debt Crisis
Sep 21, 2016
China is drowning in it. The whole world has too much of it. History suggests: This won’t end well.
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Why Corporate CEO Pay is Routinely Undercounted
Sep 15, 2016
An Institute for New Economic Thinking Working Paper by William Lazonick and Matt Hopkins reveals that much reporting on executive pay relies on systems of measurement that underreport real compensation
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Guardian’s Wisconsin investigation points to big money’s systemic distortion of U.S. democracy
Sep 15, 2016
Newspaper’s probe amplifies questions raised by our research into the impact of corporate donations onU.S. elections
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European Ruling Highlights Apple's Corrupted Business Model
Aug 31, 2016
There is much for U.S. authorities to learn from the European example of forcing corporations to pay their fair share of taxes, but more far-reaching oversight of executives’ allocation of resources is also required
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Working Paper Series
The Mismeasure of Mammon: Uses and Abuses of Executive Pay Data
Aug 2016
Report to the Institute for New Economic Thinking on the statistical measurement and policy implications of the compensation of the highest- paid U.S. corporate executives
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The link between health spending and life expectancy: The US is an outlier
Aug 18, 2016
The US stands out as an outlier: the US spends far more on health than any other country, yet the life expectancy of the American population is not longer but actually shorter than in other countries that spend far less.
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Working Paper Series
Political Lending
Aug 2016
Using a unique dataset provided by the Center for Responsive Politics (CRP), we document a direct channel through which financial institutions contribute to the net worth of members of the U.S. Congress, particularly those sitting on the finance committees in the Senate and the House of Representatives.
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Stark New Evidence on How Money Shapes America’s Elections
Aug 8, 2016
Oversights of two generations of social scientists have weakened democracy.
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Financialization and its Discontents
Aug 2, 2016
Focusing on what money really is – whether gold or state fiat – shifts attention away from what credit really is, which is to say away from the center of discontent.
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Working Paper Series
How Money Drives US Congressional Elections
Aug 2016
Social scientists have stubbornly held that money and election outcomes are at most weakly linked. New research provides clear evidence to the contrary.
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Modern Monopolies
Jul 21, 2016
With the power of modern computing being harnessed into increasingly small and portable devices, what do digital platforms mean for the entrenched global economy?
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German Worries: Fear Fosters Crisis
Jul 20, 2016
Inflation, the euro crisis – for years there has been one worry hype after another. Yet fear frequently turns out to be wrong. We need a committee of wise men in charge of dealing with the real risks.
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Working Paper Series
Latent Instrumental Variables: A Critical Review
Jul 2016
This paper considers the estimation problem in linear regression when endogeneity is present, that is, when explanatory variables are correlated with the random error, and also addresses the question of a priori testing for potential endogeneity.
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What’s the Problem With Protectionism?
Jul 19, 2016
One thing is now certain about the upcoming presidential election in the United States: the next president will not be a committed free trader.
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The Promise of Regrexit
Jul 12, 2016
Europe’s leaders must recognize that the EU is on the verge of collapse. Instead of blaming one another, they should pull together and adopt exceptional measures.
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From Brexit to the Future
Jul 11, 2016
The EU is preparing to take a tough line with Britain, in order to deter other member states from following it out of the Union. But it is the neoliberal agenda that has prevailed for last four decades, benefiting only the top 1%, that is fueled voter anger on both sides of the Atlantic.
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Another Banking Crisis in Europe? This Time, Save Banks, Not Bankers
Jul 7, 2016
If Italy or the European Union have to step in to save banks, there’s no reason for them to have to do it for free
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Brexit, Trump and the challenge of populism
Jul 6, 2016
What we’re reading: As the shock of the UK referendum vote to leave the European Union continues to roil, a number of analysts see it as revealing dynamics of which all Western policymakers ought to be aware
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Channeling Charles Kindleberger on Brexit
Jul 5, 2016
The economic historian would have seen the British vote to leave the European Union as part of a larger drama of centralization versus pluralism
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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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Learning to think about shadow banking
May 30, 2016
Why most economists did not see the 2008 crash coming
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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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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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Working Paper Series
Ethics 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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This is Water (or is it Neoliberalism?)
May 25, 2016
A meditation on Vercelli, Vernengo and Levitt & Seccareccia
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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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Commentary
Who 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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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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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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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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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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Commentary
Thoughts 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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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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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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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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Commentary
On 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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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Working Paper Series
Luigi 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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Different Models, Different Politics
Mar 9, 2016
Gerald Friedman responds to the Romers on the Sanders Plan.
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Politics & Economics Don't Mix
Mar 4, 2016
Jamie Galbraith and I rarely agree. But we agree here.
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Economic Forecasting Models & Sanders Program Controversy
Feb 26, 2016
The Romer/Romer letter to Professor Gerald Friedman marks a turning point. It concedes that there are indeed important issues at stake when evaluating the proposed economic policies of Presidential Candidate Bernie Sanders. These issues go beyond the political debate and should be discussed seriously between and among professional economists.
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Globalized Finance and the Crisis of 2008
Feb 2, 2016
The world economy is just starting to recover from the most disastrous episode in the history of financial globalisation. Understanding what happened is essential.
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Innovation and the State
Jan 26, 2016
Economic growth and rising prosperity does not happen at the moment of invention. Only an innovation policy aiming to maximise activities throughout the innovation cycle will succeed in capturing economic growth that enhance the welfare of all citizens.
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Relearning History
Jan 19, 2016
Lessons Ignored From the 1930s