Economics

Archive for Economics

Sumner Provides an Answer…Or Does He?

Apparently there are a fixed number of comments to be posted on this blog per week, and so if I don’t keep the posts flowing, you guys pile up 58 comments in a single one. Because of this, many readers may not have seen Scott Sumner’s reply to my queries. (If you need to refresh […]

I Demand Answers From the Aggregate Demanders

Just to clarify, when I say I’m an aggregate demand skeptic, I don’t mean to deny that aggregate demand exists, at least in principle (though we might not measure it well). I also don’t mean to deny that it does indeed sometimes fall sharply. Further, I concede that these falls are caused by human activity, […]

Murphy Moving Mainstream?

If I were a male model, Will Ferrell would lean to his right and comment, “He’s so hot right now.” * The Economist magazine’s blog discusses the tag-team showdown between Kling and me, versus Scott Sumner. But then David Beckworth comes in and hits me in the back of the head with a steel chair. […]

Pop Quiz on Economists!

Pop quiz everyone! I hope you studied! But I’m a softie, so in case you have had the flu or something, I’ll give you, let’s say, 3 minutes to skim this post and get up to speed with where we’ve taken the class this past week. [Stage manager: Play Jeopardy theme music.] OK now for […]

Further Explanation of My Defense of Kling from Sumner

OK now that I have a little more free time, I clarified my response to Sumner (in defense of Kling on Recalculation). I am simply re-posting my long comment from Scott’s blog. (If you don’t know what the context is for this, just follow the link. Scott brings you up to speed in his original […]

Instead of a Peek, Scott Sumner Should Have Taken a Ponder

I am so naive. In response to what I think was a magnificent defense of Arnold Kling against Scott Sumner (and Brad DeLong), I was expecting Scott to either blow me up, or to admit that I had a good point and the Austrian theory went up one notch in his book. But alas, all […]

Can Austrian Business Cycle Theory Explain Construction Employment?

With all the excitement over my favorite Keynesian, I almost forgot about the untimely demise of Scott Sumner yesterday. Joking aside, I really think I snatched victory from the jaws of defeat for Arnold Kling in his argument with Sumner (concerning housing starts and the Great Recession). I emailed this to Kling myself, but I […]

Is There a Conservative Case for QE?

I say no. An excerpt: And there you have it, clear as a bell. Paul Krugman couldn’t have said it any better. According to Beckworth, the problem with our economy is that people aren’t spending enough. This simple idea is very powerful; it permeates our financial press when they wring their hands and wonder if […]