Crash Course in Disequilibrium Economics

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This is a set of 5 lec­tures that I deliv­ered last week in Quito, Ecuador, at FLACSO–the Latin Amer­i­can Fac­ulty of Social Sci­ences. In future years I hope to expand this into two com­plete courses–one on the his­tory and devel­op­ment of eco­nom­ics from a dis­e­qui­lib­rium per­spec­tive, and the other on dynamic mon­e­tary mod­el­ing in eco­nom­ics using Min­sky, the Open Source sys­tem dynam­ics pro­gram that I have devel­oped with the help of a grant from INET.

The reductionism stops here

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One of the defin­ing fea­tures of neo­clas­si­cal eco­nom­ics is the belief that macro­eco­nomic analy­sis has to be not merely com­pat­i­ble with, but deriv­able from, micro­eco­nomic analy­sis. The devel­op­ment of eco­nomic the­ory has been dri­ven far more by this belief than by the desire to make the the­ory com­pat­i­ble with the observed behav­iour of the economy.

Will the Australian house price souffle rise twice? (1)

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One of the advan­tages of being over­seas right now is that it takes less effort to avoid lis­ten­ing to the insipid dis­course that passes for polit­i­cal debate dur­ing this Aus­tralian elec­tion. As Kevin Rudd and Tony Abbott com­pete over who can be more obnox­ious to refugees, I find myself pin­ing for the days of sen­si­ble and humane poli­cies under Mal­colm Fraser. As politi­cians make them­selves the butt of their own unin­ten­tional sup­pos­i­tory jokes, I pine for some­one who could deliver a killer line against his oppo­nent, rather than against him­self: Paul Keating.