Tag Archives: economic theory

Gregory Mankiw: “The ‪‎economy‬ is complex, and economic science is still a primitive body of ‪knowledge‬.”

Professor Gregory Mankiw (Chair of Economics Department, ‪Harvard‬ University) on economics. From the horse’s mouth: “The ‪‎economy‬ is complex, and economic science is still a primitive body of ‪‎knowledge‬.” Taken from here Advertisements

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Economics of oversimplification, or when real people ruin perfect economic models

from: Mankiw, Gregory. 2014. Principles of Economics. Cengage Learning. (P. 436) P.S. Homo Economicus should watch what he eats! 😉

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What is the difference between microeconomics and macroeconomics?

 😉 By Zach Weiner

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‘Performativity thesis’: Accounting’s mediating role in bringing theoretical statements from economics into life

An interesting “The ‘performativity thesis’ and its critics: Towards a relational ontology of management accounting” by Ed Vosselman, explores accounting’s mediating role in bringing theoretical statements from economics into life. The paper addresses the so-called performativity thesis that claims that economic … Continue reading

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Why the Federal Reserve Failed to See the Financial Crisis of 2008: The Role of “Macroeconomics” as a Sensemaking and Cultural Frame

In this very interesting and enlightening paper by Neil Fligstein, Jonah Stuart Brundage & Michael Schultz (University of California, Berkeley), they tackle one of the puzzles about the crisis of 2008: why the regulators were so slow to recognize the … Continue reading

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“Economics graduate programs may be turning out a generation with too many idiot savants skilled in technique but innocent of real economic issues.”

A sentence adorning the title of this post was one of the conclusions of the American Economic Association’s Commission on Graduate Education in Economics, formed in 1991, chaired by Anne Krueger and included Kenneth Arrow, Robert Lucas, Joseph Stiglitz, Lawrence … Continue reading

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‪‎Economics‬ Students of the World, Unite! ‪‎Students‬ from 19 countries call for change in the way the discipline is taught

The International Student Initiative for Pluralist Economics, which brings together 42 groups of economics students spread across four continents, is the first global protest against mainstream economic teaching. In the open letter they write: “It is not only the world economy … Continue reading

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The Bank of England’s “‪‎Money‬ Creation in the Modern ‪‎Economy‬” erodes the mainstream ‪economics‬ and ‪‎finance‬ theory

Money creation in practice differs from some popular misconceptions — banks do not act simply as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’ central bank money to create new loans and deposits. … Continue reading

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From Political Economy to Economics: the Desocialisation and Dehistoricisation of the Dismal Science

From Political Economy to Economics: Method, the Social and the Historical in the Evolution of Economic Theory shows how economics was once rich and diverse, and unravels the processes that lead it to formalistic and monolithic neoclassical orthodoxy. This very interesting book by … Continue reading

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“We should not be surprised at this fact: mechanistic theories are bound to produce results which look automatic” (Ludwig Lachmann)

“The path of economic progress is strewn with the wreckage of failures. Every business man knows this, but few economists seem to have taken note of it. In most of the theories currently in fashion economic progress is apparently regarded … Continue reading

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