Archive for September, 2009

Coordination games in everyday life

September 11, 2009

Yeah, truly a good example of self-organization!


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Krugman’s LSE Lectures – Go Back and Read Keynes!

September 7, 2009

A large number of public lectures from the LSE are online at their homepage. This is a great chance to see lectures of many well-known personalities (Dani Rodrik, Robert Shiller, Richard Thaler, Amartya Sen, Paul Krugman and Lord Anthony Giddens, just to mention a few). Another great thing is that the LSE is using Twitter to spread the information about new lectures. I will follow!

The most interesting lectures for the economists are surely Paul Krugman’s Robbins lectures on “The Return of Depression Economics”. Krugman made a couple of excellent points that could not be said loud enough.

  1. “The problem is almost all of the economic analysis that is of any use here is decades old, if not generations old. (…) Most of what we’ve done in macroeconomics for the past 30 or so years has turned out to be spectacularly useless, at best” (quoted from the beginning of Krugman’s third lecture, for his detailed argument take a look at his article in yesterday’s New York Times).
  2. Against the conventional wisdom Krugman argues that expanding the monetary base does NOT lead to inflation if you are in a liquidity trap.
  3. The importance of the paradox of thrift which has been forgotten by mosts macroeconomists (see also his blog at the NY Times).

So what do we conclude? Go back and read Keynes!