Category Archives: The dismal science

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.

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.

Assuming Away Unemployment and Trade Deficits from the TPP

It should come as no surprise that the Peterson Institute has managed to model the impact of the TPP so that it does not increase unemployment.

Michael Hudson on Debt Deflation, the Rentier Economy, and the Coming Financial Cold War

Michael Hudson speaks with Justin Ritchie on his favorite topics, such as debt deflation, austerity, classical economists on rentiers, and the coming financial cold war.

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.

Negative Interest Rate Conundrum

Why are central banks and governments opting for their unusual negative interest rate stance?

Mirabile Dictu: Lead Story at Bloomberg Gives a Thumbs Up to MMT

Bloomberg gives a fairminded and reasonably detailed report on MMT.

Louis Proyect: Boom Bust Boom

Boom Bust Boom a wickedly funny but mind-expanding analysis of 2008 crisis driven by the proposition that the capitalist system is inherently unstable.

Gaius Publius: The Goal of the Neo-Liberal Consensus Is to Manage the Decline

Neoliberals want ordinary people to accept that their standard of living will decline. It’s not hard to see whose interest that story promotes.

Krugman Then and Now on Trade

Krugman shifts ground (yet again) as hostility to the negative effects of trade deals appears to be a big component of Sanders’ Michigan upset

Gerald Friedman Responds to the Romers on the Sanders Plan: Different Models, Different Politics

Gerald Friedman explains that the difference between his results and that of the Romers on the Sanders plan is the result of using different models.

Galbraith: Attack on Sanders’ Economic Plan By Former Chairs of the Council of Economic Advisors Irresponsible

Jamie Galbraith discusses in some detail why Gerald Friedman, a Clinton supporter who gave a favorable review of Sanders’ economic plan, is owed an apology by his detractors.

Forecasting Elections

How have prediction markets done versus the pundits in forecasting the 2016 elections so far?

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.