A Brief Note of Clarification

No, I am not saying that economic models are useless and unnecessary. I am saying that the models of Krugman and New Keynesians are useless, specifically IS/LM, the greatest advocate of IS/LM being Hicks – hence “Hicks/Hansen”. Hicks himself urged that IS/LM analysis be dropped, because IS/LM cannot describe a dynamic economy. It, therefore, made[…]

Understanding the Central Concern of Macroeconomics and “Money” Versus Real Resources

Corn. An amusing word if you say it a few times. Food. Another word that can be amusing too if said repetitively. “Food” is a generalised description of the things that humans eat to stay alive. The word “corn” simply narrows food down. It is a more precise description of one of those things we[…]

Don’t Listen to Milton Friedman. There is a Free Lunch If There is a Lunch to be Found

I apologise for the rather brief post as I am quite busy, but I wish to address some persistent nonsense and to clarify concepts. I will use the US government as today’s example, but what I am about to say equally applies to the UK, Canada and Australia. Is lunch what you used as payment[…]

The “Bite-Sized” Explanation of The Phillips Curve and the Job Guarantee

The Phillips Curve: The private sector is nearing actual full employment. Wage price pressures are threatening an inflationary episode. The national government manipulates its fiscal or monetary policy, reducing aggregate demand and thus, reducing inflationary pressures, throwing workers into a state of involuntary unemployment. The Job Guarantee: The private sector is nearing actual full employment.[…]