Interesting interview with professor Steve Keen, where he explains the role of debt in GDP (not currently included in economic models). He models the effects on lending acceleration and repayment options (slow vs. fast) in economic cycles and explains how he was able to successfully predict the 2008 economic crisis. Contrary to traditional Western fiscal … More Modern Economic Theory for the Digital Economy
New evidence suggests that the global economic slow down may have been present before the great recession of 2008. … More Conference: Making Sense of the Productivity Slowdown, Panel 1
Net employment has been increasing at a brisk pace in the UK and, since the third quarter of 2013, in Spain. Eurostat (kudo’s) has new data about this: labour market flows. This statistic shows how many employed people became unemployed, how many unemployed people became employed, how many ‘inactive’ people became ‘active'(i.e. became employed or started looking for a job) and how many ‘active’ people became ‘inactive’.
… More Labour market flows and the musical chairs economy
Neoclassical economics nowadays usually assumes that agents that have to make choices under conditions of uncertainty behave according to Bayesian rules, axiomatized by Ramsey (1931) and Savage (1954) – that is, they maximize expected utility with respect to some subjective probability measure that is continually updated according to Bayes theorem. If not, they are supposed to be irrational, and ultimately – via some “Dutch book” or “money pump”argument – susceptible to being ruined by some clever “bookie”. … More The Keynes-Ramsey-Savage debate on probability
The escape from the balance sheet recession. Will the EU make it? … More The difference between a balance sheet recession and an economic recession
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!
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