Category Archives: The dismal science

Striking a Bargain: Narrative Identification of Wage Bargaining Shocks

Workers and employers bargain over the surplus income generated by an employment relationship. This column uses information about key events in Germany relevant for wage negotiations, like labour strikes and the introduction of a minimum wage, to pinpoint changes in bargaining power between workers and employers. It finds that such wage bargaining ‘shocks’ are important drivers of unemployment and inflation and that their effect on wages is almost fully reflected in prices. Furthermore, they reduce the vacancy rate and increase firms’ profits and the labour share of income in the short run, but not in the long run.

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Michael Hudson on Finance Capitalism’s Self-Destructive Nature

Michael Hudson rings the changes on a favorite theme: the differences between the financial capitalism and industrial capitalism systems

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There is No Nobel Prize in Economics

Yves here. From time to time, readers chide us for lacking the patience to spell out the proper name of economics profession’s imitation Nobel Prize. J.R. Swenson is particularly annoyed by this practice and is highlighting some of the (sadly still few) instances within the discipline of pushing back against the brand appropriation. To highlight […]

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Michael Hudson: From Junk Economics to a False View of History – Where Western Civilization Took a Wrong Turn

Hudson reviews how economics has misrepresented the evolution of money and land ownership and promoted oligarchy.

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