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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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from Dean Baker Regular readers know that I am skeptical that AI will lead to a massive uptick in productivity growth, and therefore large-scale job loss (as is the Congressional Budget Office), but it is important to realize we have been here before. Specifically, we have had long periods where productivity grew rapidly. It did not […]

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from Peter Radford “Adam Smith said a bunch of stuff that was mostly right.  Marx said a bunch of stuff that was wrong.  Keynes fixed some things up, messed some others. Then Lucas broke everything again. Now we’ve basically got it all worked out, except for money, growth, recessions, banks, bubbles, inflation, unemployment, exchange rates, […]

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from Lars Syll There are many kinds of useless economics held in high regard within the mainstream economics establishment today. Few — if any — are less deserved than the macroeconomic theory and method, mostly associated with Nobel laureates Finn Kydland, Robert Lucas, Edward Prescott and Thomas Sargent, known as calibration. In physics, it may not […]

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from Dean Baker For more than a century, investors, both foreign and domestic, felt comfortable having their money in the United States because they knew it was governed by the rule of law. This meant, for example, if there was a contract dispute, they could reasonably expect it would be decided in a court based […]

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from Lars Syll How would you react if a renowned physicist, say, Richard Feynman, were telling you that sometimes force is proportional to acceleration and at other times it is proportional to acceleration squared? I guess you would be unimpressed. But actually, what most mainstream economists do amounts to the same strange thing when it […]

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