This paper challenges the notion of “modern economics” demonstrating that existing models are not sufficient to handle the next wave of global economic disruption that will be experienced during the next 40 years. Four examples are presented to illustrate the paradigm shifts in the making. Upcoming monumental challenges require reevaluating societal needs of the 21st century and approaching modeling from a fresh perspective. Technology has moved on, so should fundamental macroeconomic assumptions. … More Modern Economics not Keeping up with Modern Times
Originally posted on Econ Off the Shelf:
Recently in the New York Times Business section, Jonathan Knee reviewed Misbehaving: The Making of Behavioral Economics, a forthcoming book by Richard Thaler of the University of Chicago. I look forward to reading Misbehaving because I’m interested in the similar critique behavioral economists and causal-realist economists have for the methods and…
Originally posted on Flip Chart Fairy Tales:
Yesterday’s GDP figures were rubbish. The first quarter of 2015 saw the slowest growth since the economy spluttered in 2012. True, it may, as Chris Giles says, be revised up but even so, 0.3 percent is well below where it should be. This isn’t how recoveries usually work. We would normally…
The escape from the balance sheet recession. Will the EU make it? … More The difference between a balance sheet recession and an economic recession
We need a new way of modeling macro economics instead of assuming that aggregate action leads to generalized welfare #SmartEconomy #finance #Money #Innovation #RealWorldEconomics
Originally posted on LARS P. SYLL:
Olivier Blanchard, the IMF’s chief economist, recently wrote: “We in the field did think of the economy as roughly linear, constantly subject to different shocks, constantly fluctuating, but naturally returning to its steady state over time. Instead of talking about fluctuations, we increasingly used the term “business cycle.” Even…
re macro-economists doomed to always “fight the last war”? Are they doomed to always be explaining the last problem we had, even as a completely different problem is building on the horizon? Well, maybe. But I think the hope is that microfoundations might prevent this. If you can really figure out some timeless rules that … More Microfoundational cyborg dream
Discover how seemingly contradicting theories can be combined to create a Smart Economy that minimizes systemic risk and fosters innovation. … More Political Paradigms and the Smart Economy
Managing risk in a globalized economy – The London Economic. Take a 10 question survey. Help us build the economic models of the future. Be part of something big. We need your opinion as a consumer!
The term ‘entitlement’ is often used in political discourse to refer to welfare and social net ‘handouts’ that create debate among liberals, realists, socialists and postructuralists alike. These debates focus around the issue of fairness considering that some people work ‘harder’ than others. However, I would like to dissect this term from the definition that … More At What Level does the Culture of Entitlement Becomes Morally Wrong?
“An unlimited pool of ideas lost to a sea of short sighted goals” Innovation in the twenty first century has a very narrow definition that centers on the purpose of creating immediate monetary value. This term can take several shapes, such as creating a new product that people want to buy, finding new ways of … More Where Innovation Should be Headed
With so much time and effort being invested in this goal by NGO’s and governments alike, this is a question worth asking. Can we effectively end poverty at some point? And if so, what will it take? The answer depends on the measuring stick being used to define poverty. In order to mitigate any kind of problem, one must first define the parameters of the problem itself. … More Can we end poverty?