Posts Tagged ‘ economics ’

"For his Sunday column, Paul Krugman wrote a piece titled 'When Zombies Win.' Krugman claims that 'free-market fundamentalists' — including Ron Paul — have been successful politically, despite being thoroughly discredited by recent events. As we'll see, it's a good thing that these ideas of shrinking government refuse to die, no matter how often Krugman attacks them." (12/23/10)

"I think it is very important that we keep track of, and thank, the Austrians who predicted the housing bubble. Let this signal contribution of the praxeological school never fall down that proverbial memory hole. Why do I say this? For one thing, to give credit where credit is due. All too often, mainstream economists take credit for all and sundry; it is time, it is long past time, that some credit be publicly accorded to Austrian economics and its practitioners, and predicting the housing bubble will do quite well as one small part of these accomplishments." (12/23/10)

"Conventional economic theory is based on the assumption that individuals act rationally. Behavioral economics modifies that by trying to take account of various observed patterns of predictable irrationality. A recent post of mine on a different blog discussed my somewhat mixed views of the project. Thinking further on the subject, a conjecture about the future of behavioral economics occurred to me." (12/22/10)

"This article provides an Austrian overview of the inflation versus deflation debate which has captured the attention of the economics profession in the years following the US housing bust." [abstract -- full paper available as PDF or MS Word download]

"What is the current state of economic science? In two words, 'not good.' This is evident in the poor performance of the economics profession during the current financial crisis. Few economists saw it coming; once it started, its severity caught them by surprise; and now it is apparent that there is no agreement among them on how to end it." (12/22/10)

"Conservatives are supply-siders; they are not market fundamentalists. If they were, then we would have legal drugs and prostitution. In many respects, the application of an Efficient Market economic analysis to law is anathema to the conservative mind. Frankly, these days, 'market fundamentalism' as technically understood, is dead. No one takes seriously anymore an Efficient Market Hypothesis applied to political economy. Market Fundamentalism now only survives as a straw man term." (12/22/10)

"Jim Manzi is a private-sector expert in statistical analysis. ... Lately, Manzi has been challenging mainstream economists to defend their models, which tout the benefits of fiscal and monetary 'stimulus.' Manzi has repeatedly asked why he should put any faith in the predictions of these models." (12/20/10)