Macroeconomics

The impenetrability of this continuously expanding Ptolemaic New Keynesian paradigm is maddening

The re-emergence of inflation threw the ‘science of monetary policy’ off the rails. Do the new tweaks to the theory work?

What lessons need to be drawn on this anniversary?

ProMarket’s new “Addendum to Retraction,” written it appears in response to our recent INET post, doubles down on its critique of our piece which showed that it is feasible for increased output to lead to reduced welfare. The ProMarket addendum is notable for its economic errors.*

Economists had to distort economic theory to fashion their merger “efficiency” arguments

ProMarket and the Consumer Welfare Standard An output increase is not sufficient to increase welfare. Allocation—how goods are distributed—matters.

The monetary policies of major central banks in advanced economies have had negative consequences and thus need to be fixed

Monetary policy should be guided much more by financial sector developments and much less by near-term targets for inflation.

On the reflexive relationship between inflation and inflation narratives

The effect of monetary policy on the functional distribution of income

Central banks strongly favored rentier incomes in their reaction functions

The role of speculation in the crude oil market in the increase in the WTI crude oil price.

Were the sharp increases in prices during 2020-2022 due to fundamental shifts in supply and demand or are they attributable to excessive market speculation?

Inflation and corporate profits, a further discussion, responding to Servaas Storm

Inflation and corporate profits, a further discussion