Feb 15, 2015
Do economists live in a world of their own?
Dec 17, 2014
A more realistic version of how people “maximize utility”
Jul 13, 2014
Our welfare depends not only on our actual consumption, but also on alternate choices wedid not make.
[PART 1] U.S. Current Account Deficits and German Surpluses: The Role of Income Distribution in Global Imbalances
Nov 25, 2013
Germany’s economic policies are under attack from all sides.
[PART 2] U.S. Current Account Deficits and German Surpluses: The Role of Income Distribution in Global Imbalances
Nov 6, 2013
In our two papers, we analyze how changes in personal and functional (wages versus profits) income distribution interact to produce different macroeconomic outcomes in different countries. On the basis of a stock-flow consistent model calibrated for the United States, Germany, and China, simulations suggest that a substantial part of the increase in household debt and the decrease in the current account in the United States since the early 1980s can be explained by the interplay of rising (top-end) household income inequality and certain institutions (e.g. easy access to credit, privately financed education and health care systems).
Apr 27, 2016
Capitalism will destroy itself, the former Greek finance minister warns, if economic calculation excludes human needs and ignores democratic verdicts
Dec 7, 2015
There is a deeper story to be told about the inclusion of the Renminbi.
Oct 13, 2015
A new online course challenges typical teaching approaches.
Oct 2, 2015
Hot on the heels of the BIS, now comes the IMF Global Financial Stability report, “Corporate Leverage in Emerging Markets–A Concern?”. Yes, a concern, and just in time for the annual meeting in Peru next week.
Oct 7, 2015
Do we need to rethink the teaching of economics?
Jul 17, 2015
The Institute for New Economic Thinking has awarded $2 million in grants to fund 21 different projects as part of the latest round of its research grant program.
Jul 15, 2015
The financial crisis of 2008 was unforeseen to a significant extent. One reason is that the dominant academic theories influencing political decision makers ignore recent advances and instead rely largely on models and decision science dating back to the Second World War.
Dec 12, 2013
Given the choice, would you accept to live in a society where happiness and prosperity is guaranteed for all on the condition that one single person be kept permanently unhappy? Is the well-being of thousands of people “worth” the sacrifice and suffering of a single innocent child? Such is the dilemma to which the inhabitants of the utopian city of Omelas are confronted in Ursula Le Guin’s philosophical short-story “The Ones Who Walk Away from Omelas”. In her parable, most people are ultimately able to come to terms with the atrocity. The few citizens who cannot end up walking away from the city — nobody knows where they go and they are never heard from again.
Oct 2, 2013
World leaders who are gathering for the APEC summit next week had hoped to be signing the Trans-Pacific Partnership Agreement (TPP). The pact would bring together key Pacific-rim countries into a trading bloc that the United States hopes could counter China’s growing influence in the region.
Oct 11, 2013
“You are now leaving the world as you know it.”