Archive

A major factor in the decline of inflation is the simple fact that America’s workers were, in general, unable to raise their nominal wages in line with the rise in the cost of living

The current paper returns to the key questions of wages and incomes and how wealth effects cripple reliance on interest rates to control inflation.

How convincing is the model analysis by Bernanke and Blanchard? How empirically relevant are their mechanisms causing inflation – and how robust and plausible are their econometric findings?

The re-emergence of inflation threw the ‘science of monetary policy’ off the rails. Do the new tweaks to the theory work?

Were the sharp increases in prices during 2020-2022 due to fundamental shifts in supply and demand or are they attributable to excessive market speculation?

A critical reappraisal of the case in favor of monetary tightening pressed by inflation hawks is overdue.

Fears of ‘stagflation’ have come back to haunt macroeconomic policy makers all over the globe

Are there alternative, less socially costly, ways to bring inflation down?

A tractable formalization of the Knightian uncertainty faced by an economist and market participants in an intertemporal asset-price model.

This paper introduces the Knightian Uncertainty Hypothesis (KUH), a new approach to macroeconomics and finance theory.

The Great Recession seems to be a natural experiment for macroeconomics showing the inadequacy of the predominant theoretical framework — the New Neoclassical Synthesis — grounded on the DSGE model.

This paper tracks the development of sectoral saving and borrowing in the US economy over the past 50 years.