Meta tags:
description= 15 posts published by Lars Syll during October 2012;
Headings (most frequently used words):
and, the, all, of, time, wonkish, is, lm, to, economics, smart, recent, comments, lars, syll, arrow, importance, averages, non, ergodicity, economists, people, being, paid, for, telling, stories, justifying, inequality, why, still, isn, good, enough, economic, myths, that, destroy, our, society, democracy, you, ever, wanted, know, about, modern, monetary, theory, neoclassical, visionless, trying, escape, responsibility, vinst, den, skattefinansierade, välfärdssektorns, dödgrävare, saving, doesn, finance, investment, chicago, professor, steven, levitt, not, so, after, trickle, down, paul, krugman, organ, grinder, ramberg, visade, upp, facklig, vinstförespråkare, sin, torftighet, econometrics, with, gretl, vinstförslag, ytterligare, ett, raden, av, politiska, självmål, posts, policy, reading, list, categories, archives,
Text of the page (most frequently used words):
the (367), and (129), that (127), not (59), new (57), but (53), for (51), share (45), opens (45), window (45), och (42), are (40), this (39), have (38), time (37), att (36), you (33), has (33), more (32), oct (31), #economics (30), with (30), what (30), bluesky (30), facebook (30), 2012 (28), may (27), would (27), investment (27), will (26), money (25), which (25), all (24), from (24), there (21), one (21), when (21), their (21), som (20), average (20), det (19), can (19), just (18), they (18), comments (17), why (17), about (17), consumption (17), mar (16), apr (16), jun (16), jan (16), inte (16), posted (16), för (16), interest (16), than (16), because (16), economic (16), jul (15), aug (15), sep (15), nov (15), dec (15), feb (15), har (15), savings (15), averages (15), lönebildning (14), arbetslöshet (14), also (14), theory (13), ett (13), med (13), rate (13), been (13), economy (13), any (13), ensemble (13), lars (12), 2011 (12), 2013 (12), 2014 (12), 2015 (12), 2016 (12), 2017 (12), 2018 (12), 2019 (12), 2020 (12), 2021 (12), 2022 (12), 2023 (12), 2024 (12), 2025 (12), only (12), does (12), till (12), could (12), saving (12), income (12), our (12), econometrics (11), like (11), den (11), between (11), where (11), was (11), should (11), many (11), people (11), demand (11), firms (11), being (10), think (10), still (10), don (10), economists (10), risk (10), policy (9), model (9), even (9), his (9), well (9), future (9), equilibrium (9), cannot (9), expected (9), some (9), market (9), important (9), difference (9), output (9), then (9), universe (9), education (8), how (8), ska (8), here (8), men (8), keynes (8), financial (8), really (8), better (8), such (8), who (8), might (8), world (8), markets (8), bank (8), kan (8), monetary (8), rates (8), capital (8), increase (8), now (7), other (7), statistics (7), society (7), same (7), gretl (7), another (7), know (7), enough (7), much (7), them (7), two (7), way (7), very (7), crisis (7), most (7), back (7), real (7), make (7), levitt (7), vote (7), right (7), person (7), present (7), neoclassical (7), vision (7), less (7), inequality (7), top (7), rich (7), comment (6), 2026 (6), nothing (6), jag (6), without (6), its (6), after (6), sense (6), fact (6), problem (6), since (6), greater (6), these (6), modern (6), mean (6), probability (6), individual (6), hold (6), different (6), system (6), problems (6), consumers (6), those (6), return (6), outcomes (6), billion (6), coin (6), utility (6), parallel (6), gamble (6), politics (5), fred (5), recent (5), professor (5), värden (5), vill (5), skolan (5), called (5), paid (5), article (5), analysis (5), down (5), must (5), instead (5), however (5), using (5), case (5), good (5), profession (5), great (5), history (5), events (5), put (5), says (5), low (5), smart (5), act (5), wealth (5), over (5), buy (5), förslaget (5), government (5), distribution (5), decades (5), economies (5), fall (5), assume (5), central (5), goods (5), asset (5), giving (5), percent (5), terms (5), assets (5), assuming (5), required (4), view (4), log (4), syll (4), full (4), efter (4), socialdemokraterna (4), roll (4), lotta (4), marknad (4), inom (4), här (4), adkins (4), shows (4), man (4), skattefinansierade (4), vinstdrivande (4), attention (4), use (4), methods (4), say (4), economist (4), ask (4), get (4), rather (4), krugman (4), finance (4), yet (4), clear (4), thinking (4), year (4), mainstream (4), off (4), decisive (4), doesn (4), million (4), live (4), election (4), actually (4), desire (4), idea (4), thing (4), investments (4), means (4), hävdat (4), alla (4), nationella (4), kvalitetslagar (4), välfärden (4), marknadens (4), while (4), capitalism (4), need (4), look (4), textbook (4), take (4), let (4), total (4), inventories (4), did (4), falls (4), cost (4), period (4), large (4), american (4), 100 (4), excessive (4), leverage (4), taking (4), toss (4), basically (4), fraction (4), non (4), arrow (4), 150 (4), six (4), collapse (3), follow (3), democracy (3), research (3), stuff (3), klart (3), måste (3), från (3), också (3), segregation (3), skola (3), vinst (3), detta (3), frihet (3), tydligt (3), går (3), edholm (3), ordförande (3), sin (3), manual (3), spend (3), version (3), today (3), doing (3), free (3), omsorg (3), nordström (3), företag (3), aldrig (3), ramberg (3), tyvärr (3), post (3), keynesian (3), later (3), long (3), out (3), becomes (3), into (3), before (3), particular (3), kind (3), applied (3), himself (3), him (3), each (3), course (3), macroeconomics (3), taught (3), textbooks (3), half (3), paul (3), call (3), chicago (3), notion (3), institutions (3), were (3), efficient (3), investing (3), done (3), conference (3), example (3), rational (3), interesting (3), trickle (3), point (3), wants (3), worth (3), making (3), never (3), presidential (3), decide (3), ago (3), specific (3), additional (3), value (3), almost (3), increased (3), increasing (3), order (3), indeed (3), preparing (3), decision (3), save (3), employment (3), consume (3), dinner (3), day (3), hence (3), medborgare (3), vad (3), när (3), funktion (3), marknaden (3), depression (3), things (3), keynesianism (3), around (3), loss (3), had (3), small (3), seems (3), authorities (3), eventually (3), classical (3), wrong (3), first (3), supply (3), having (3), gone (3), lower (3), incomes (3), started (3), rises (3), functions (3), myths (3), goes (3), regulations (3), grew (3), growth (3), middle (3), gains (3), wealthy (3), job (3), jobs (3), romney (3), made (3), america (3), often (3), returns (3), stories (3), few (3), natural (3), level (3), relevant (3), price (3), isn (3), students (3), wonkish (3), increases (3), possible (3), lost (3), telling (3), risks (3), ergodic (3), tossing (3), perspective (3), ergodicity (3), stake (3), independent (3), sign (2), subscribed (2), subscribe (2), wordpress (2), com (2), account (2), blog (2), varia (2), science (2), school (2), reading (2), arbetslösheten (2), arbetslöshetsiffran (2), styr (2), especially (2), language (2), links (2), please (2), guarantee (2), sverige (2), credibility (2), paradox (2), viktigt (2), gör (2), bära (2), samhälle (2), demokrati (2), idag (2), bara (2), utan (2), kommersiella (2), skolmarknaden (2), menar (2), sedan (2), bakom (2), motion (2), centrala (2), jämlikhet (2), allra (2), behöver (2), mellan (2), skolor (2), var (2), finns (2), lena (2), sommestad (2), program (2), advanced (2), earlier (2), versions (2), thanks (2), teaching (2), torftighet (2), hört (2), facklig (2), vinstintressen (2), bolag (2), vård (2), istället (2), ställa (2), intet (2), hade (2), komma (2), 1980 (2), john (2), weakness (2), aware (2), general (2), term (2), figure (2), own (2), diagram (2), position (2), single (2), implies (2), borrow (2), security (2), offered (2), soon (2), questions (2), arises (2), hard (2), looking (2), considering (2), change (2), everything (2), regarded (2), reached (2), anything (2), manner (2), want (2), tell (2), try (2), divergences (2), theoretical (2), explain (2), entitled (2), overlook (2), believe (2), endless (2), davies (2), missed (2), useful (2), turned (2), organ (2), grinder (2), defense (2), evidence (2), set (2), context (2), role (2), modest (2), based (2), approach (2), predicted (2), george (2), behind (2), institute (2), tried (2), under (2), themselves (2), explaining (2), assumed (2), lot (2), whether (2), impossible (2), argue (2), matter (2), wins (2), given (2), apart (2), issues (2), countries (2), argument (2), chance (2), writes (2), cast (2), possibly (2), zero (2), steven (2), therefore (2), substitution (2), equal (2), unspecified (2), fallacy (2), conclusion (2), provide (2), production (2), current (2), promoted (2), diminished (2), merely (2), placing (2), effect (2), expectation (2), actual (2), forward (2), thus (2), specified (2), date (2), business (2), net (2), denna (2), analys (2), frågan (2), socialdemokratiska (2), val (2), valfrihet (2), idén (2), lika (2), mål (2), effektiv (2), rätt (2), välja (2), vinstbegränsning (2), bärs (2), ordning (2), reda (2), staten (2), bör (2), behandla (2), princip (2), händer (2), andra (2), åtgärder (2), syftar (2), tillträde (2), får (2), förbättra (2), saknar (2), sidan (2), vinstuttag (2), partistyrelsen (2), land (2), välfärdssektorns (2), dödgrävare (2), extensive (2), led (2), alternative (2), academic (2), friedman (2), found (2), century (2), main (2), task (2), constant (2), imagination (2), war (2), shown (2), dealing (2), systemic (2), crises (2), times (2), piece (2), escape (2), equals (2), common (2), bit (2), reason (2), work (2), happening (2), nominal (2), maybe (2), ensure (2), encourage (2), sell (2), difficult (2), happen (2), focus (2), short (2), extra (2), happens (2), fixed (2), perhaps (2), key (2), lots (2), keep (2), falling (2), realistic (2), stays (2), story (2), inventory (2), accumulation (2), national (2), thought (2), end (2), reasons (2), reducing (2), fallen (2), aggregate (2), identity (2), initial (2), stop (2), process (2), further (2), situation (2), expenditure (2), simple (2), includes (2), stockbuilding (2), wanted (2), measured (2), imply (2), understanding (2), little (2), conventional (2), going (2), elsewhere (2), self (2), mistake (2), everyone (2), class (2), offset (2), weak (2), creators (2), didn (2), private (2), sector (2), bush (2), fund (2), leads (2), gives (2), innovations (2), see (2), high (2), trust (2), through (2), united (2), states (2), rising (2), median (2), various (2), opportunity (2), life (2), dependent (2), data (2), upward (2), mobility (2), talking (2), carlin (2), soskice (2), move (2), lead (2), stochastic (2), likelihood (2), seen (2), bet (2), years (2), knowing (2), comes (2), trillion (2), according (2), barriers (2), studies (2), trade (2), physicians (2), considerations (2), show (2), bankruptcy (2), investor (2), describe (2), number (2), valuation (2), correct (2), certain (2), decisions (2), always (2), thinks (2), calculated (2), reward (2), envision (2), universes (2), importance (2), processes (2), fair (2), pay (2), arithmetic (2), geometric (2), probably (2), arrest (2), once (2), imagining (2), accept (2), fortiori (2), concepts (2), website, name, email, write, loading, bar, manage, subscriptions, site, reader, report, content, privacy, already, join, 606, subscribers, feeds, entries, 112, archives, 707, 542, methodology, 998, 390, 301, 168, categories, list, fredtorssander, wiklund, torssander, netiquette, anonymous, ones, pseudo, argumentations, abusive, irrelevant, remember, leaves, limited, respond, outperforms, dictatorship, reification, randomisation, nancy, cartwright, contributions, philosophy, randomness, representativeness, credible, revolution, statsskulden, problemet, välförtjänt, bottenrekord, audioholic, summer, stein, lesson, precision, unbiasedness, love, secret, finding, late, student, studenten, personal, ekonomiska, politiken, posts, next, page, vilka, vårt, skolpolitiken, formar, framtiden, stark, jämlika, livschanser, vinstintressena, bort, skiktas, samhället, klasslinjer, etnicitet, forskning, visat, hur, resulterar, ökad, etniska, linjer, hög, tid, strid, svensk, par, veckor, ställde, sig, uppsala, arbetarekommun, socialdemokraternas, partikongress, kravet, längre, accepteras, övergripande, målet, skolverksamhet, argumentet, skolans, präglat, tankens, verkligheten, talar, språk, kommersialiserade, sviker, elever, bäst, dagens, presenteras, förödande, resultaten, edholms, skolpolitik, skillnaderna, skolorna, växer, sämst, fattiga, områden, stockholm, papperstidningen, ställs, svars, rätta, min, fråga, gånger, vilket, pris, snart, två, februari, debatterade, stockholms, skolmarknad, skolborgarrådet, agenda, hävdade, skapade, sämre, skolresultat, synd, partiledningen, lyssnar, klokt, folk, egna, leden, kvinnornas, skrev, nyligen, principiellt, viktig, intressant, blogg, artikel, vinstförslag, ytterligare, raden, politiska, självmål, ahead, promise, fun, downloadd, tasks, expensive, commercial, programs, 041, hill, griffith, lim, 4th, power, scripting, material, monte, carlo, simulation, loop, constructions, etc, certainly, users, amply, increadibly, easy, operate, hansl, principles, lee, access, perfect, tool, best, totally, riccardo, lucchetti, allin, cottrell, lyssna, njuta, intervjun, naknare, sällan, ledande, förespråkare, välfärdsföretag, annars, gyllene, tillfälle, tala, kommunal, undanröja, möjligheterna, verka, blev, svajade, vanligt, enligt, finnas, kvar, nämnda, sektorer, stället, fortsätta, större, krav, företagen, förr, löst, förpliktigande, tal, varit, bättre, fackordföranden, deklarerat, hör, hemma, svenskt, välfärdssamhälle, undantag, dem, lät, han, kommunals, undan, vanliga, undanglidningsmanövrerna, fått, vittring, släppte, bytet, annelie, ekots, lördagsintervju, tomas, landet, fullt, slöa, slappa, lata, loja, journalister, visade, upp, vinstförespråkare, explanation, journal, hicks, fully, shares, itself, known, developments, excessively, presentation, presumably, represented, taken, peg, appeared, occupy, link, industrial, sectors, borrower, likes, charged, attends, intermediation, apparent, dichotomy, curves, pressed, too, turns, toward, past, suspect, prescribe, least, possibility, changed, remain, approximately, existing, hoped, somehow, settle, necessarily, stage, accordingly, conclude, usefully, survives, classroom, gadget, superseded, something, application, causal, drastic, inappropriate, deliberately, interpreted, concept, used, stringent, pedantic, uses, committing, appear, ridiculous, assure, reality, quite, prepared, cases, issue, needs, faced, starting, tired, tirades, splendour, hicksian, invention, read, starter, magic, silver, bullet, old, truth, basic, makers, critique, expect, concur, complains, amounts, irrelevance, theorists, held, responsible, pays, disturbing, news, departments, university, eugene, fama, described, fault, fantasy, argues, casualties, causes, recession, hypothesis, championed, blamed, active, managers, recommendations, emerged, straightforward, concrete, participants, agreed, study, broader, political, emphasis, majority, accepts, proposals, mounted, robust, expectations, rejecting, rethink, nobel, laureate, robert, lucas, argued, predicts, soros, generous, funding, inet, england, stimulate, fresh, ideas, proceedings, organized, edited, provocative, title, core, disciplines, stylized, models, shortcomings, project, syndicate, howard, confuses, understand, missing, cos, virtually, swing, state, disagree, positions, democratic, republicans, farther, left, groupings, ten, aptly, retorted, andrew, gelman, indicator, candidate, freakonomics, answered, question, interview, trouble, requires, preparation, immediate, activity, sum, saved, potentiality, consuming, absurd, though, universal, effective, fostered, specious, derived, stimulus, extent, consisted, abstaining, simultaneously, yield, improved, resources, released, involve, cancellation, raison, être, paradoxical, propensity, depressing, ceteris, paribus, speak, necessitate, pair, boots, week, depresses, stimulating, ready, diminution, annat, hålla, eminenta, ekonomihistoriker, hon, landets, gräsrötter, leva, partiledningens, kompromissförslag, risken, stor, håller, fast, vid, förlorade, nästa, redan, fredags, kvinnor, gräns, friheten, vara, hållbar, vila, bädd, solidaritet, människors, värde, överordnat, samhällsbygget, välfärdspolitik, produktiv, investering, kostnad, minimera, dessa, framstå, självklart, positiva, står, desto, mindre, tydlig, konflikt, socialdemokratin, historiskt, bärande, lyfts, användning, skattemedel, hävda, aktuella, allt, väsentligt, marknadsliberala, idéer, samma, respekt, ställer, mig, oss, överhuvudtaget, möjligt, följa, välfärdsmarknad, där, marknadslogiken, långa, stycken, ersatt, normer, demokratin, medborgarskapet, uppdraget, delegerar, sjukhus, intresse, skilja, lönsamma, olönsamma, socialdemokratins, viktigaste, jämlikheten, marknadskonkurrens, driver, fram, bristande, likvärdighet, möjligheten, sätta, stopp, nyetableringar, tvärtom, försämra, fritt, bli, konkurrensmarknad, vinstens, disciplinerande, nya, konkurrenter, intill, politiker, makt, dela, exklusiva, rättigheter, lokal, näringsverksamhet, vore, rimligt, ges, exklusivt, stängd, tak, vinsten, vissa, öppna, böcker, uppenbarligen, mer, information, brukare, lättare, verksamheten, kontrolleras, konsekvent, idé, göra, sägs, ena, klarar, lösa, välfärdens, kvalitetsproblem, bejakas, både, saknas, tydlighet, såväl, värderingar, skarpa, ideologiska, skiljelinjen, borgerlig, socialdemokratisk, politik, alltid, handlat, synen, ser, räckvidd, begränsas, syfte, värna, gemensamma, intressen, familjebildning, hälsa, social, sammanhållning, miljö, borgerligheten, olika, grad, förespråkat, beslutet, rymmer, mest, problematiskt, föreslår, någon, formell, reglering, förbli, enda, europa, regler, ens, fredas, beslut, löfte, lagt, förslag, syftet, kvaliteten, avsevärt, begränsa, vinsterna, articles, seem, suffered, whit, subsequent, sequence, slow, train, wreck, reasonably, rubbished, lesser, mortals, equally, opendemocracy, philip, mirowski, turn, undermined, took, action, prevent, enormous, rewards, received, bankers, heart, meltdown, unfettered, produced, equitable, clearly, training, dentistry, nowhere, 20th, challenge, came, friedrich, hayek, milton, envisioned, ideal, involving, isolated, individuals, bargaining, contended, usually, messes, overtaking, inadequate, tackling, stagflation, 1970s, fueled, neoliberal, conservative, agendas, governments, downsides, approaching, dentist, above, driven, powerful, believed, create, prosperity, inherently, unstable, reform, caught, generation, experienced, helped, drive, nearly, tackle, defined, maynard, become, dentists, part, body, remove, pain, nice, lack, perspectives, alternatives, york, bradley, bateman, roger, backhouse, visionless, trying, responsibility, simon, wren, lewis, worry, alone, feel, stupid, understood, applies, able, chose, fine, horizon, assumes, adjust, talk, leave, second, below, negative, persuade, raise, determines, yes, afraid, fixes, consumed, predict, banks, nowadays, determining, keeps, find, motives, highly, complex, opportunities, parked, cash, lend, savers, won, until, reluctant, add, stock, initially, higher, cheaper, circuit, forgetting, accurately, forecast, practice, involuntary, quarterly, movements, discussed, thrift, ends, got, big, equalling, accounting, paying, reduce, match, rise, reversed, overall, stayed, accumulating, exactly, cut, cutting, continue, losing, closed, definition, lets, split, components, buying, accumulate, surely, accounts, absolutely, someone, automatically, firm, nuts, bolts, nexus, lecture, help, challenging, wisdom, randall, wray, book, presents, provoking, created, usual, mystifications, nature, ever, joseph, stiglitz, explained, detail, far, beyond, damage, fabric, suffering, regulating, governmental, interference, 2008, cured, anyone, realize, plagued, booms, busts, origin, suffer, excesses, place, strong, worked, noting, faster, stably, stripping, away, former, together, contrast, latter, idealists, killing, goose, lays, golden, egg, engine, weakens, bottom, concentration, bubbles, instability, fed, effects, arising, lax, regulation, irony, tax, cuts, dividends, supposed, spur, alleged, record, creation, dismal, international, recognize, connection, contrary, serving, subset, myth, lie, discussion, bain, equity, creating, restructuring, downsizing, moving, abroad, debt, bleed, companies, needed, enrich, generally, source, transformative, crucial, medicine, internet, measure, financed, development, highest, emerging, surprise, invested, china, latitude, taxation, either, taxes, cayman, islands, hide, aways, stronger, works, tide, lifts, boats, suggests, enriching, patent, falsehood, decade, groups, college, fared, worse, male, worker, instance, four, rags, riches, grip, chances, young, parents, downward, europe, scandinavia, campaign, defended, brushed, aside, employed, handful, destroy, affects, spending, workers, indebted, stagnated, brought, kalecki, authority, controlled, suggest, control, variable, suggested, normal, particularly, distributive, essential, feature, macro, elimination, tendency, bounce, trend, wendy, david, voxeu, org, undergraduates, era, explicitly, framework, ismp, rigidities, clue, hybrids, helping, grasp, essentials, naked, matias, vernengo, earn, changes, entire, willing, educated, success, played, realized, implicit, assumption, deterministic, schooling, guaranteed, precisely, earnings, doubt, harvard, advisor, greg, mankiw, last, both, western, societies, dean, baker, paychecks, disastrous, justify, workings, rules, shifted, rewarded, studying, housing, bubble, stands, country, congressional, budget, office, 000, per, household, honest, efforts, documenting, waste, associated, protectionist, professionals, devoted, estimating, tariffs, products, shoes, tires, speaks, incredible, corruption, hundreds, showing, services, bring, wages, european, levels, close, justifying, warning, quest, creates, recurrent, appropriate, necessary, ingredient
Text of the page (random words):
t and that could be set at a level which will not lead to full employment particularly for distributive reasons in my view the essential feature of a more relevant macro model would be the elimination of the natural rate the idea that the system has a tendency to bounce back to the trend and by the way the model says nothing about how income distribution affects spending yet the main reason behind the crisis has been the fact that workers had to get indebted since income has stagnated so income distribution has to be brought back to macroeconomics not enough kalecki with their new but still neoclassical version of keynesianism that is the problem with carlin and soskice share on facebook opens in new window facebook share on x opens in new window x share on bluesky opens in new window bluesky economic myths that destroy our society and democracy 29 oct 2012 at 17 40 posted in economics politics society 1 comment the romney campaign has defended inequality or brushed it aside to do so it has employed a handful of economic myths here are a few of the most important 1 america is a land of opportunity while rags to riches stories still grip our imagination the fact of the matter is that the life chances of a young american are more dependent on the income and wealth of his parents than in any of the other advanced countries for which there is data there is less upward mobility and less downward mobility from the top even than in europe and we re not just talking about scandinavia 2 trickle down economics works a k a a rising tide lifts all boats this idea suggests that further enriching the wealthy will make us all better off america s recent economic history shows the patent falsehood of this notion the top has done very well but median american incomes are lower than they were a decade and a half ago various groups men and those without a college education have fared even worse median income of a full time male worker for instance is lower than it was four decades ago 3 the rich are the job creators so giving them more money leads to more and better jobs this is really a subset of myth 2 but romney s own private sector history gives it the lie as we all know from the discussion of bain capital and other equity firms many made their money not by creating jobs in america but by restructuring downsizing and moving jobs abroad often using debt to bleed the companies of money needed for investment and using the money to enrich themselves but more generally the rich are not the source of transformative innovations many if not most of the crucial innovations in recent decades from medicine to the internet have been based in large measure on government financed research and development the rich take their money where the returns are highest and right now many see those high returns in emerging markets it s not a surprise that romney s trust fund invested in china but it s hard to see how giving the rich more money through more latitude to escape taxation either through low taxes in the united states or cayman islands hide aways leads to a stronger american economy 4 the cost of reducing inequality is so great that as much as idealists would like to do so we would be killing the goose that lays the golden egg in fact the engine of our economic growth is the middle class inequality weakens aggregate demand because those at the middle and bottom have to spend all or almost all of what that they get while those at the top don t the concentration of wealth in recent decades led to bubbles and instability as the fed tried to offset the effects of weak demand arising from our inequality by low interest rates and lax regulation the irony is that the tax cuts for capital gains and dividends that were supposed to spur investment by the wealthy alleged job creators didn t do so even with record low interest rates private sector job creation under bush was dismal mainstream economic institutions like the international monetary fund now recognize the connection between inequality and a weak economy to argue the contrary is a self serving idea being promoted by the very wealthy 5 markets are self regulating and efficient and any governmental interference with markets is a mistake the 2008 crisis should have cured everyone of this fallacy but anyone with a sense of history would realize that capitalism has been plagued with booms and busts since its origin the only period in our history in which financial markets did not suffer from excesses was the period after the great depression in which we put in place strong regulations that worked it s worth noting that we grew much faster and more stably in the decades after world war ii than in the period after 1980 when we started stripping away the regulations and in the former period we grew together in contrast to the latter when we grew apart as i have explained in detail elsewhere the cost of these myths goes far beyond the damage to our economy now and in the future the fabric of our society and democracy is suffering joseph stiglitz share on facebook opens in new window facebook share on x opens in new window x share on bluesky opens in new window bluesky all you ever wanted to know about modern monetary theory 29 oct 2012 at 16 53 posted in economics 1 comment challenging conventional neoclassical wisdom on modern monetary theory economics professor l randall wray in this new book presents a thought provoking analysis of how money is created and functions instead of the usual mainstream economic textbook mystifications of the nature of money we are here given a theory that shows what s really going on in modern monetary economies share on facebook opens in new window facebook share on x opens in new window x share on bluesky opens in new window bluesky s i 29 oct 2012 at 11 10 posted in economics 3 comments for those still having problems with understanding the nuts and bolts of what s wrong with textbook versions of the savings and investment nexus perhaps this little lecture might help q if consumers spend less and save more does this mean investment must increase a absolutely not someone increasing their saving does not automatically imply that some firm will decide to buy more capital goods q but surely savings equals investment by identity in the national accounts a indeed total output total income total expenditure y in the most simple model of a closed economy without government income y consumption c saving s but also expenditure y consumption c investment i so s i by definition but here investment includes what is called stockbuilding or inventory accumulation which includes goods that firms wanted to sell but could not to make this clear lets split measured investment i into these two components i dk buying new capital goods ds stockbuilding so if people consume less c falls but investment in new capital dk stays the same measured investment rises because firms accumulate inventories of the goods that consumers did not buy ds rises q but this situation cannot continue as firms may be losing money a exactly they will cut back on their output incomes will fall consumption may fall further and savings will also fall cutting back on the initial increase that we started with q when will this process stop a when firms stop accumulating inventories i e when ds 0 then and only then will s dk q but how can this be we have assumed that dk stayed the same and we started with an increase in s a you have not been paying attention each time firms reduce their output to match lower demand incomes and savings fall eventually the initial rise in savings is reversed because overall income has fallen q got it but textbooks make a big thing about aggregate savings equalling investment if it is just an accounting identity why is it important a what the textbooks really mean is that we eventually end up with a position in which s dk and that is important for the reasons we have just discussed it is called the paradox of thrift a desire by consumers to increase savings ends up just reducing output and savings do not increase at all of course they are still saving more of their income s y has gone up but because y has fallen not because s has increased q but i thought with all this just in time production stuff firms did not hold many inventories any more a well we could short circuit the story by forgetting about inventories and having firms accurately forecast what demand will be and therefore what their output should be in practice what we call involuntary inventory accumulation can still be important when looking at quarterly movements in national output q but is it realistic to assume investment i mean dk stays the same if savings are initially higher if there are more savings around it becomes cheaper to borrow which will encourage investment right a it might but it might not in particular if output is falling firms may be reluctant to add to their capital stock q but won t interest rates keep falling until they do after all the asset market has to clear a savers have an alternative which is to just keep their savings as money q but they will put the money in a bank and the bank will lend it a maybe but the bank may just decide to hold on to the cash q it seems to be really important what people do with their additional savings a perhaps but i think the key point is that most of the time the person doing the saving is different from and has different motives to the person doing any investing a highly complex financial system links the two and in that system there will be lots of opportunities for the additional savings to be parked as money q money seems very important here it is why the extra saving does not have to find its way into more investment a i think that s right q if people hold the extra savings as money will that not increase money demand what happens if the central bank keeps the money supply fixed a people hold money not just as a way of saving but also to buy and sell things and if less is being consumed there is less need for money on this account it is difficult to predict what will happen to the total demand for money which is why central banks nowadays focus on determining short term interest rates rather than the money supply q that s not what it says in my textbook it says the central bank fixes the money supply a yes i know i m afraid it s a bit out of date don t ask me why q so if the central bank determines the interest rate why don t they ensure the interest rate is low enough to encourage firms to buy more capital goods a that is what they would like to do there are two problems first it may take some time for the monetary authorities to work out what is happening and what the right interest rate is i could talk about real and nominal rates here but let s leave that for another day second nominal interest rates cannot go below zero and maybe we would need negative interest rates to persuade firms to raise investment enough q my textbook also says that the classical model assumes interest rates adjust so s i by which i assume they mean s dk does that mean the classical model is wrong a only if you think it applies at all times and that there is no other reason why output cannot fall however if we assume that the monetary authorities eventually are able to chose the right interest rate then the classical model is fine when thinking about economies over a long enough time horizon q this all seems like common sense i feel a bit stupid not to have understood this before a don t worry you are not alone simon wren lewis savings equals investment share on facebook opens in new window facebook share on x opens in new window x share on bluesky opens in new window bluesky neoclassical economics visionless and trying to escape responsibility 29 oct 2012 at 09 24 posted in economics 1 comment roger backhouse and bradley bateman has a nice piece in new york times on the lack of perspectives and alternatives shown by mainstream economists when dealing with the systemic crises of modern economies economists do much better when they tackle small well defined problems as john maynard keynes put it economists should become more like dentists modest people who look at a small part of the body but remove a lot of pain however there are also downsides to approaching economics as a dentist would above all the loss of any vision about what the economic system should look like even keynes himself was driven by a powerful vision of capitalism he believed it was the only system that could create prosperity but it was also inherently unstable and so in need of constant reform this vision caught the imagination of a generation that had experienced the great depression and world war ii and helped drive policy for nearly half a century in the 20th century the main challenge to keynes s vision came from economists like friedrich hayek and milton friedman who envisioned an ideal economy involving isolated individuals bargaining with one another in free markets government they contended usually messes things up overtaking a keynesianism that many found inadequate to the task of tackling the stagflation of the 1970s this vision fueled neoliberal and free market conservative agendas of governments around the world that vision has in turn been undermined by the current crisis it took extensive government action to prevent another great depression while the enormous rewards received by bankers at the heart of the meltdown have led many to ask whether unfettered capitalism produced an equitable distribution of wealth we clearly need a new alternative vision of capitalism but thanks to decades of academic training in the dentistry approach to economics today s keynes or friedman is nowhere to be found and philip mirowski has an equally interesting article on opendemocracy net explaining why neoclassical economists don t seem to have suffered one whit for the subsequent sequence of events a slow motion train wreck that one might reasonably have expected would have rubbished the credibility of lesser mortals two articles well worth reading share on facebook opens in new window facebook share on x opens in new window x share on bluesky opens in new window bluesky vinst den skattefinansierade välfärdssektorns dödgrävare 29 oct 2012 at 09 07 posted in politics society comments off on vinst den skattefinansierade välfärdssektorns dödgrävare den socialdemokratiska partistyrelsen har lagt förslag om nationella kvalitetslagar för ordning och reda i välfärden syftet är att förbättra kvaliteten och avsevärt begränsa vinsterna detta är ett viktigt beslut socialdemokraterna går nu till val med löfte om vinstbegränsning men beslutet rymmer också problem mest problematiskt är att partistyrelsen inte föreslår någon formell reglering sverige ska förbli det enda land i europa som saknar regler för vinstuttag i välfärden inte ens skolan ska fredas från vinstintressen den skarpa ideologiska skiljelinjen mellan borgerlig och ...
|
