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News
Thomas Ferguson's article is featured in the International Economy Magazine
Apr 28, 2021
“The much-touted “new thinking” on fiscal policy and debt is actually very thin and little of it is new. In the 1990s, economist Luigi Pasinetti clarified the folly of the proposed Maastricht criteria for public finances and forecast the coming disaster with those. Subsequently, many economists, including more than a few working with the Institute for New Economic Thinking, showed in detail how austerity reduces potential output over time and how absurd theories about Phillips Curve trade-offs lead to big underestimates of real rates of unemployment. Running below full employment for long periods blows big holes in public finances and thus piles on debt.” – Thomas Ferguson
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News
INET working paper on how maximizing shareholder value led to minimizing national interests is cited in The American Prospect
Dec 7, 2020
“If companies continue to prioritize maximizing shareholder wealth at the expense of other key stakeholders, and at the expense of investing in innovation, then the Green New Deal could reinforce long-standing income and wealth inequities and the decline in innovation in the U.S. economy (for an important example, Bill Lazonick and Matt Hopkins document how maximizing shareholder value minimized the strategic national stockpile for ventilators and personal protective equipment).” —Lenore M Palladino
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Podcasts
Benjamin Grant
May 13, 2020
Rob talks to Benjamin Grant, the founder of Overview, a company that utilizes satellite and aerial photography to study the impact of humanity on the planet and how the planet affects humanity. They discuss the ways that the pandemic is affecting Earth as a whole—from CO2 emissions to water quality—and how humanity can work together as a global commons.
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News
Anatole Kaletsky discusses INET research in an interview with Project Syndicate
Jan 25, 2021
“INET has supported a lot of brilliant academic work in areas such as Imperfect Knowledge Economics, financial regulation, human development, and environmental economics. Such research has helped to discredit the ideas – such as “perfect” competition, “efficient” markets, and “rational” expectations – that formed the ideological foundations for laissez-faire microeconomics, monetarist central banking, and irrational pre-Keynesian fiscal policy, especially in Europe. As such, it has done as much as INET’s other work – including policy research, academic community-building, and deepening collaboration with the International Monetary Fund, the OECD, and other official institutions – to end market fundamentalism’s intellectual monopoly.” — Anatole Kaletsky, Project Syndicate
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Working Paper
Working Paper SeriesComments on Paul Davidson’s “Full Employment, Open Economy Macroeconomics, and Keynes’ General Theory: Does the Swan Diagram Suffice?”
Feb 2016
This is a response to a critique by Paul Davidson of our 2013 book Keynes: Useful Economics for the World Economy and related work, where we describe, amongst other things, how the Swan diagram can be used to show how economies can use policy tools to achieve internal and external balance.
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Video
Facts and Values Are Entangled: Deal with It
Jan 9, 2012
Are there more poor people on our planet today than there were last year? Many economists would approach this question as mainly a technical problem, a matter of counting.
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Grant
Years granted: 2012, 2013, 2014, 2015Capital Controls and the International Monetary System
This research project develops a rigorous new theoretical way to study controls of international capital flows and determine their optimal magnitude using a promising new empirical methodology.
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Grant
Years granted: 2011, 2012, 2013, 2014How Big Is Too Big? What Should Finance Do and How Much Should It Be Cut Down to Size?
This project studies a broad array of financial institutions to discover the impacts of financial regulations on functionally efficient finance, productivity growth, and income distribution.
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Grant
Years granted: 2011, 2012, 2013Extending Macroeconomics and Developing a Dynamic Monetary Simulation Tool
This research project develops a software program for economic simulation that makes it easy to develop dynamic, monetary models of the macro-economy.
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Grant
Years granted: 2011Developing a Market-Based Concept of System Risk
This research project develops an operational measure of systemic risk, as an input into the policy process by capturing the interaction of private and governmental sources of systemic risk during and in advance of the crisis.
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Video
The Economics of Being Seen
May 28, 2025
What does economic inequality look like when we account for gender identity, sexual orientation, and lived experience?
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Working Paper
Working Paper SeriesA Theory of How and Why Central-Bank Culture Supports Predatory Risk-Taking at Megabanks
Dec 2015
This paper applies Schein’s model of organizational culture to financial firms and their prudential regulators.
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Working Paper
Working Paper SeriesLearning, Expectations, and the Financial Instability Hypothesis
Nov 2015
This paper analyzes what assumptions on formation of expectations are consistent with Minsky’s Financial Instability Hypothesis (FIH) and its corollaries.
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Working Paper
Working paperNetworks and Misallocation: Insurance, Migration, and the Rural-Urban Wage Gap
Sep 2015
We provide an explanation for the large spatial wage disparities and low male migration in India based on the trade-off between consumption-smoothing, provided by caste-based rural insurance networks, and the income-gains from migration.
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Video
Can You Trust the Experts?
Apr 10, 2024
Transparency and ethics are critical.