Bill Black: Mankiw’s Mythical Ten Commandments of Theoclassical Economics
Examining Maniw’s core myths, um, principles, and how they are dangerously misleading.
Read more...Category Archives: Market inefficiencies
Money and Banking – Financial Crises
The mechanics of financial crises and how an economy gets there.
Read more...A Global Marshall Plan for Joblessness?
Time for a Marshall Plan for unemployment: no workfare, no bullshit jobs, no compulsory work, no digging holes. Start with a Green New Deal.
Read more...Where is Amy Klobuchar? How Democratic Indifference is Squandering a Unique Moment on Antitrust Policy
It’s been a good few weeks for opponents of further market concentration. Oil services firms Halliburton and Baker Hughes called off their merger amid a Justice Department lawsuit. New rules on corporate inversions led to an abandonment of the Pfizer-Allergan merger. The White House issued a directive to federal agencies to take steps to foster competition, with an opening salvo of ending the monopoly of cable set-top boxes. The Economist, of all places, started agitating for increased competition amid record corporate profits. The antitrust movement, in short, has gone mainstream.
Read more...Uber Spends $100 Million to Save its Business Model, But It May Have Just Doomed It
I’ve written before at this august site about how Uber’s business model is to arbitrage state and federal law and replace a monopoly with a different monopoly. They obviously placed a high value on the arbitrage. How high? About $100 million.
Read more...Robert Reich: Why Is One of Sanders’ Most Important Proposals Being Ignored?
Sanders’ financial transactions tax plan hasn’t gotten the hearing it deserves.
Read more...Rajiv Sethi: Fee-Structure Distortions in Prediction Markets
Since the launch of the pioneering Iowa Electronic Markets almost thirty years ago, prediction markets have grown to become a familiar fixture in the forecasting landscape. Among the most recent entrants is PredictIt, which has been operating for about a year under a no-action letter from the CFTC.
Read more...Misunderstanding the Great Recession
How many of the textbook explanations of the Great Depression were proven wrong, yet despite that, were misapplied to the Great Recession.
Read more...Michael Hudson and Chris Hedges: The Real World Cost of Turning Classical Economics Upside Down
Classical economics recognized the costs of rent extraction, excessive borrowing, and encouraging speculation over commerce. Ideologues have turned those lessons on their head.
Read more...Reducing Carbon Emissions Won’t Halt Economic Growth
The big obstacle to reducing carbon emissions isn’t economic costs, but inertia and the impact on powerfully placed special interests.
Read more...Media Attention and Investment Decisions
Correlations between media attention and capital flows to investment vehicles are well established. However, the question arises of whether this is due to new information conveyed or if it is just an artefact of the attention itself. This column employs fund rankings from the Wall Street Journal to investigate the issue. It shows that media attention does drive these investment decisions, even if no new information is conveyed. It further argues that financial intermediaries are aware of this effect and exploit it.
Read more...James Galbraith Describes Major Forecast Failure in Model Used by Romers to Attack Friedman on Sanders Plan
James Galbraith examines the used forecast by Christine Romer and David Romer to attack Gerald Friedman’s favorable review of Sanders’ plan. He’d already shellacked the methodology in a 2014 book.
Read more...Paul Craig Roberts on Michael Hudson’s Killing the Host
An introduction to Michael Hudson and his latest book.
Read more...Capitalism Versus The Social Commons
How the struggle over who controls the commons, the monied classes or a broader group of citizens, reveals the fundamental contradictions of capitalism.
Read more...ObamaCare’s Neoliberal Intellectual Foundations Continue to Crumble
A new study shows that health care consumers do not comparison shop, undermining a key assumption behind the ObamaCare marketplace
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