In previous post on the founding of the Bank of England, we have explained that Central Banks were created to provide financing for wars. In fulfilling this role, they had several advantages over the state, enabling them to get credit, and get it at low interest rates. For a number of reasons, this was not… Read More Central Bank History (2/5) 1814-1914 Hundred Years Peace
This is the second part of Lecture 9 in Advanced Macro II, Spring 2019, at PIDE by Dr. Asad Zaman. The first part (L09A: Why Minsky Matters) covers the first 27m of the YouTube lecture linked below. The second part, L09B, starts 27:22m is about 1hr long: A 1500 word summary/outline of the key… Read More Mainstream Versus Minsky
This post is the third part of lecture 8 of Advanced Macro L08C: Fisher’s Debt-Deflation Theory of the Great Depression. In previous segments of this lecture L08A: Micro-Foundations for Keynesian Economics, and L08B: Keynesian Explanation for Great Depression: Seriously Incomplete, we examined the Keynesian explanation for the Great Depression, and found serious deficiencies in it. L08A… Read More Fisher’s Debt Deflation Theory of Financial Crises
{bit.ly/weaCCT} Economists do not understand inflation. Daniel K. Tarullo. Former Governor, Federal Reserve Board should surely be in a position to know. I will list some key conclusions from his paper with the revealing title: Monetary Policy Without a Working Theory of Inflation : We do not, at present, have a theory of inflation dynamics that works… Read More Class-Conflict Theory of Inflation
[bit.do/wwmmt] In a rapidly changing world, ways of thinking which served us well in other eras, become obstacles to understanding, and reacting appropriately to change. Traditional economic theories, currently being taught all around the world,blinded economists to the possibility of the global financial crisis.The Queen of England went to London School of Economics to ask… Read More Modern Monetary Theory
After the Global Financial Crisis, there has been a lot of re-thinking about Monetary Policy, as one might expect. In fact, in light of the magnitude of the failure, re-thinking efforts have been much less than proportional. There are many, many, different strands of thought, and personally, I do not have clarity on what needs… Read More Summary of Stiglitz on Monetary Policy
This is the second lecture on Understanding the Rise and Fall of the Gold Standard — shortlink: bit.do/azifa2 — we start with a Summary of First Lecture The first lecture discusses the Keynesian theory that the exact level of money in an economy is critically important – too little leads to recessions, while too much leads… Read More International Financial Architecture: Part II
[bit.do/azifa] Lecture 1 on Rise and Fall of the Gold Standard, on Friday 4th May 2018 in AR Kemal Rm at PIDE, by Dr. Asad Zaman, VC PIDE. 1hr 20m Video Lecture. Shortlink for Lecture 2: bit.do/azifa3 – 1hr lecture for general public (non-economists): Understanding International Finance. 3100 word summary of lecture:
I am planning a sequence of posts on re-reading Keynes, where I will try to go through the General Theory. This first post explains my motivations for re-reading Keynes. As always, my primary motive is self-education; this will force me to go through the book again — I first read it in my first year… Read More P1: Reading Keynes
The Global Financial Crisis of 2007 has led to a renewed interest in Keynesian theories. In particular, Krugman in “The Return of Depression Economics” argued that Keynesian ideas remain relevant to understanding contemporary recessions. To motivate this, he has used a real world example of the Capitol Hill Baby-Sitting Cooperative (BSC). According to an analysis by… Read More Monetary Paradoxes of Baby-Sitting Cooperatives
WEA Pedagogy Blog 