Amen brother

Agent Contnjdida… AC says macro should be taught as a branch of computational economics. If I had made that connection two years ago I would have been on the job market this year.


The problem with academic macroeconomists is that they’re terrible at telling stories. We say recessions are caused by real and nominal shocks and people snore. And monetary policy is too boring to be the best aggregate demand policy. “You mean to tell me that buying and selling some debt instruments is the key to solving […]

They’re both speaking English, I think

How is it possible that this person (and his commenters) and this person live on the same planet? A definition of economics is “the study of incentives”; an idea that’s pretty well baked into my brain at this point. This means I have a big problem: I have trouble even empathizing with people who don’t […]

Rhetoric matters

I recognized myself in Krugman’s remarks about otherwise bright, educated people who need to have arguments about international trade explained to them in baby talk. I’d hate to be on the side of the creationists in any argument, so I started asking questions. — Sierra Madre Referenced Krugman essay, the Landsberg post that referenced it […]

Let’s talk about… financial education

This post and then this post passed by in succession in my rss reader this afternoon. Since its hard work to make real connections between things, I’ll let this random pairing do the work for me. First reaction to Mike’s post on financial education: education is paternalism. To wit, Mankiw’s views of economics education are […]

It is profound and earth shaking…

… every time I run into a statement like this: “But all interesting models involve unrealistic simplifications, which is why they must be tested against data.” We can know things a priori, but we can’t know how important those things are a priori. A model can tell us how a particular mechanism operates, but it […]


You can call Federal Reserve policies aimed at the sending of signals that alter the expected rate of future inflation “monetary policy” if you want, but then you lose analytical clarity–because the way such policies work (if they work) is not the “normal” way that “normal” monetary policy works. — Prof. Delong New rule: to […]

Yes, Keynes was a smart guy

I’ve mentioned before that I’ve attempted The General Theory on several occasions but have never really “got” it. Knowing Keynes was a smart guy and he basically founded the field I research in, I assume the problem is me not him. Really. Judge Posner wrote a “Nixon in China” summary of the book which is […]

Walk out?

I don’t think I’ll be participating in the planned walk out Thursday at UC campuses. I’m not clear what the goals of the walk out are to be. Are they to protest a short-term budget shortfall? To dispute the priorities in budget balancing? To lament the lack of voice in the process? I’m not sure […]

Krugman was looking under a lamppost

One more on macro from Kocherlakota. Everything on his list seems right to me. As I’ve pointed out before, he notes that macro folks (at least those that got their PhD since 1990) have studied heterogeneity, frictions, bounded rationality and government intervention and they’ve done so at the core of their research agendas. He points […]