Why the Fed’s Bazooka Will Not Stop a Wave of Corporate Defaults
By Benn Steil and Benjamin Della Rocca Acknowledging the enormous threat to jobs and incomes posed by the coronavirus epidemic, the Federal Reserve on…
Read MoreKeynesianism
Why Keynes Believed Efforts to Fight Income Inequality Hinder Economic Growth
he economist John Maynard Keynes (1883-1946) famously said, “in the long run we are all dead.” He wasn’t saying we should ignore the long…
Read MoreThe illusion of the Keynesian multiplier
For most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. It is…
Read MorePaul Krugman’s Predictions about “Austerity” Aren’t Aging Well
Paul Krugman’s arguments do not fare well against evidence in a new book written by economists Alberto Alesina, Carlo Favero, and Francesco Giavazzi titled,…
Read MoreMacroeconomics Has Lost Its Way
The father of modern macroeconomics was Keynes. Before Keynes there were macro considerations, which were firmly grounded in human action, the personal preferences and…
Read MoreHow magical is the Keynesian multiplier?
For most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. The view is…
Read MoreFor Keynesians and Austrians, “Uncertainty” Means Two Different Things
By G. P. Manish and Felicia Cowley Keynesian economics has witnessed a remarkable resurgence since the crisis of 2008. The inability of mainstream economics to predict or…
Read MoreFaking it
Thanks to the election of President Trump and his uncompromising attitude to the establishment media, much hot air is being expended on the subject…
Read MoreMerry Christmas from TCC: Treasury Select Committee to examine low interest rates
Next year there will be a parliamentary enquiry into the effects of ultra low interest rates and other mechanisms of radical monetary policy. It…
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Benn Steil: Paul Krugman Doubles Down On Fiscal Expansion Claims Contradicted by Data
“Everything about recent experience,” Paul Krugman says, “suggests that the world desperately needs fiscal expansion to boost demand and … that our sole reliance…
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