Alternatives to mainstream economics

20 Jan, 2020 at 09:03 | Posted in Economics | 3 Comments

 

3 Comments

  1. Thanks, Lars!

  2. Just bought Shaikh’s book!

  3. Anwar,
    .
    One of the key assertions in your Youtube presentation and in your writings is that the 1970s stagflation was a failure of Keynesian policies.
    .
    Lucas and Sargent were able to make the same argument but for different reasons and engendered the demise of Keynesian economics.
    .
    I disagree with your assertion.
    .
    The inflation of the 1970s was caused by the jump in oil prices – a supply side shock.
    .
    The stagnation component was caused by the massive transfer of income to oil producing economies that accompanied the oil price rise – a demand side shock.
    .
    There is precious little that any form of economic policy could do in the face of such deep complementary economic shocks.
    .
    The best that could be managed was the recycling of the so-called petrodollars flood – an inundation which resulted in increases in asset prices and the price of gold, mainly.


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