The insights into the financial meltdown that policymakers found most valuable came from scholars, such as Hyman Minsky and Charles Kindleberger, who thought in terms of broad aggregates and made no effort to establish micro foundations. The market participants, such as Ray Dalio, who were most prescient with respect to the crisis ignored microeconomics as they theorized in terms of debt and credit aggregates.
Monday, September 17, 2018
Microfoundations
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I'm not a fan of "diagrams" in economics, but sometimes... This is a screen capture of slide 36 from a SlideShare presentatio... -
Mark Thoma links to the Kansas City Fed's Nominal Wage Rigidities and the Future Path of Wage Growth by José Mustre-del-Río and Emily ... -
JW Mason : "... in retrospect it is clear that we should have been talking about big new public spending programs to boost demand.... -
It is surely true that the price level cannot rise without a corresponding increase in the quantity of money or velocity or use of credit. ...
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Went to Harbor Freight the other day. When I left, there was so much traffic I had to fight my way out of the parking lot -- at one p.m. on ...
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