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The economics profession stands on the fragile foundation of presuppositions adopted by professional agreement rather than as a result of empirical observation.

“Taking advantage of the opportunity offered by the structural adjustments of the global economy…”The decisions on the four modernisations taken at the Third Plenum represented a radical change in Chinese domesticdevelopment strategy.

How to rebalance Chinese economy has become a topic of heated discussion. After years of fast economic expansion, now China faces a difficult crossroad. The global financial crisis provided clear evidence that China’s traditional export-driven strategy is vulnerable to slumps of the external demand.

When the Curriculum Open-access Resources in Economics (CORE) project launched on 11 November 2013 at Her Majesty’s Treasury in London, we promised that we would be ‘teaching economics as if the last three decades had happened’. The last six months have shown us that this is challenging but we are well on our way to doing it.

This paper, an extension of the Presidential Address to the International Economic Association, evaluates alternative strands of macro-economics in terms of the three basic questions posed by deep downturns: What is the source of large perturbations? How can we explain the magnitude of volatility? How do we explain persistence?

This paper empirically examines the effects of the Federal Reserve’s Large Scale Asset Purchases (LSAP) on bank profits.