In an article for the American Economic Review the economist Paul Romer critizises the use of mathematical approaches in the economics, especially the way they are employed by the New Classical School in the discipline. An overview of the debate can be found on Bloomberg, while the paper itself is available to be downloaded in our membership area.
WHEN: Wednesday, 27th May 2015 (2-3 pm)
WHERE: On campus, room 1.09
Finally the first meeting for the reading group is scheduled! It will take place on the 27th of May and include an introduction to all the activities we have planned. It is an informal meeting to meet and greet the current members, so there will be no preparation necessary! As long as you are interested in the field, you will be a welcome addition to our group!
Does economics have a moral dimension? Or, in other words, do our views on the economy reflect our moral values. Professor Haidt of NYU's Stern School of Business thinks yes. He has written an interesting paper on the topic - but you can also watch his talk about it below.
In a recent blogpost on Project Syndicate Jeffrey Sachs is criticizing Nobel-laureate Paul Krugman for his recent praise of current U.S. economic policy and his continued lamenting about British austerity policies. According to Sachs, the recovery of both countries follows a similar trajectory, so one cannot defend one and criticize the other without putting one's intellectual honesty in doubt. What makes this debate interesting is the fact that Sachs is not known to be a defender of austerity measure (see one of his recent books) and is on the same page as Krugman on many issues. The posts of both economists are worthwhile reading, for they emphasize that the complexity of economic policies during economic crisis goes beyond the simple austerity vs. spending divide. Additionally, it shows that even the best economists can engage in confirmation bias and see the reality align with their political beliefs.
In a forthcoming article in the American Economic Review, Thomas Piketty - author of Capital in the Twenty-First Century - is qualifying some of his arguments. According to his most recent article the problem of inequality cannot be reduced to his formula of r>g. This formulation implies that returns on capital (r) are having a higher growth rate than the overall economy (g), thereby increasing economic inequality over time. In his new publication Piketty gives more room to political developments, the role of institutions, and the complexity of economic development as major factors in emergence of inequality. A short summary of his arguments can be found here, but the entire journal article is a recommended read.