Category Archives: econ 488

An Interesting Take on RBC Models

Mankiw throws some New Keynesian perspective into our analysis of RBC models. Good explanation of Walrasian Equilibrium and Classical Dichotomy.
http://scholar.harvard.edu/files/mankiw/files/real_business_cycles.pdf

 
Also, look at how CUTE my do… Continue reading

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The “Conceptual Framework” of Modern Education

The conceptual framework of modern education is misleading and unhelpful to students. It now seems more prominent than ever, the idea of “being good at school”. It has taken over the lives of students since we entered into the system. We’ve been spoon fed by our teachers and professors. Page limits, word counts, exact specifications. […] Continue reading

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The Fatal Flaw of Rational Expectations

While I believe that expectations are important to include in economic analysis, the belief that people and the economy are rational in tandem is fundamentally flawed. The mathematization of people’s decision making processes is flawed. The mathematization of economics is flawed. The equality between the two: flawed. I know what you’re thinking: If we don’t […] Continue reading

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The Fatal Flaw of Rational Expectations

While I believe that expectations are important to include in economic analysis, the belief that people and the economy are rational in tandem is fundamentally flawed. The mathematization of people’s decision making processes is flawed. The mathematization of economics is flawed. The equality between the two: flawed. I know what you’re thinking: If we don’t […] Continue reading

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New Keynesian Economics

New Keynesian Economics Founded with an attempt to build microeconomic foundations for Keynesian economics Particularly sticky wages and prices Why are changes in aggregate price level sticky? Why don’t price changes mimic changes in nominal GNP? Regards the choices of monopolistically competitive firms that set their individual prices to accept the level of real sales […] Continue reading

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Interesting Article Regarding Mixing Politics and Macroeconomics

https://www.bloomberg.com/news/articles/2017-01-24/fed-debate-over-4-5-trillion-balance-sheet-looms-in-2017

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Path dependence and why history matters

Humans build intricate beliefs about the political-economic system and express a descriptive view of how the system works as well as a normative one of how it should work. The incremental process of change is initiated by the individual entrepreneur … Continue reading

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Soros and the Principle of Reflexivity

George Soros, in The Alchemy of Finance offers a great explanation for the differences between social and physical sciences that is synthesized in his theory of reflexivity. His principle of fallibility posits that in situations that have thinking participants, the … Continue reading

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Minsky’s resurgence

The Great Recession generated a great deal of pandemonium. As a high school student at the time, it was impossible to eschew the bombardment of news covering the unfolding of the recession. News about the banking industry, the government bailout, … Continue reading

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Dealing with Uncertainty

Usually, economics assumes that participants act on the basis of perfect knowledge in order to achieve an optimum allocation of resources. But we all recognize that there is a clear demarcation between the reality of a political-economic system and the … Continue reading

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