Monty Pelerin's World

Economic, Financial and Political Analysis

Tag archives for Macroeconomics

Mallard Filmore, PhD Economics

Economists often spend time with fancy but useless mathematical models of the overall economy. Too many have been educated away from common sense, worshipping the gods of differential equations and statistical models. Some take on the qualities of an idiot savant, brilliant in esoteric and narrow areas. Their world is seen through the prism of [...]

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Failed Economics

This blog consistently emphasizes the importance of microeconomics over macroeconomics. Indeed, I argue that macroeconomics is not economics but rather a part of either history or statistics or some other field. It is merely the summary of past aggregates. In that sense it is both history and statistics. It summarizes economic data. Economics, however, is [...]

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Keynes’ “Animal Spirits”

Macroeconomics does not work for a multitude of reasons. First and foremost is that it does not pick up the “changes” at the microeconomic level. That is, it does not deal with changes in incentives and disincentives that individual decision-makers like business owners, consumers and investors use to fashion their behavior. An excellent example is [...]

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Witch Doctor Economics

The economic packages employed by the Bush Administration and extended by the Obama Administration are being increasingly questioned. Similar stimulus policies have been used for 50 plus years, although never in doses so large. “Stimulus” is merely a euphemism for inflationism and has been since the ideas of John Maynard Keynes hijacked sound economic thinking. Doug Noland [...]

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Keynesian Economics Explained

Mark W. Hendrickson wrote a piece on Keynesian Economics in American Thinker today. It is an excellent read for fans or opponents of Keynes. Even better for those who want to learn, or refresh, some economics. In the piece he discusses the following four topics: 1) Thralldom to the Keynesian macro-economic paradigm. 2) Blindness to [...]

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