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Real-World Economics Review Blog: Real-World Economics Review Blog | Posts are by authors of papers published in the RWER. Anyone may comment.

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Robert Solow kicking Lucas and Sargent in the pants
from Lars Syll The purported strength of New Classical macroeconomics is that it has firm anchorage in preference-based microeconomics, and especially the decisions taken by inter-temporal utility maximising ‘forward-looking’ individuals. To some of us, however, this has come at too high a price. The almost quasi-religious insistence that macroeconomics has to have microfoundati...

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AI productivity boom and shorter workweeks
from Dean Baker Productivity growth is an old concept; we’ve been seeing it at a substantial pace for more than 200 years. Nonetheless, many elite intellectual types like to claim they know nothing about it when they talk about AI. It’s far from clear how much of a productivity boom we will see with AI. […]

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Will gravity pull down the AI bubble?
from Dean Baker I have written before on the AI bubble. The stock valuations we are seeing now look a lot like the valuations we saw before the Internet bubble began to crash in 2000. Even a quarter century later, people miss much of the story of that bubble. It’s true we had companies that never made […]

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Why we are heading for another financial crash
from Lars Syll The recurring pattern in financial crises is broadly the same. For one reason or another, a shift occurs in the economic cycle — such as war, innovation, or new regulation — which alters profit opportunities for banks and firms. Demand and prices rise, drawing ever larger parts of the economy into a […]

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