Economic historians Barry Eichengreen and Kevin H. O’Rourke are using empirical data to compare this downturn to the Great Depression. I’ll be referring to and adding to their comparison in the next Debtwatch (which will be published late next week, before the RBA’s July meeting), but the research is so good that it deserves to be highlighted now.
More gems and brickbats from the world’s media and blogs gathered by Evan, with contributions from other blog members. Please keep those tips coming in to gfcwrap at gmail.com.
I’ve had a few exchanges with neoclassical economists recently via the East Asia Forum blog, whose editor approached me to write a version of my “What a load of Bollocks” post on this site. That piece “Why neoclassical economics is dead”, critiqued an East Asia Forum post “The state of economics” by neoclassical textbook authors McTaggart, Findlay and Parkin.
In Debunking Economics, I argued that economic theory had done such damage to society that humanity would be better off if everything ever written about economics by anyone–including yours truly–were obliterated, and the world had to start again from scratch.
Before the Pool Room, a quick comment on Australia’s recent 0.4% growth in GDP in the first quarter of 2009–largely due to a surprise growth in net exports–and the sequel the next day of a surprise trade deficit.
Briefly, the “textbook” definition of GDP is:
GDP = C+I+G+X-M
STEVE KEEN and EVAN JONES in conversation with FRANK STILWELL
In this event to celebrate the publication of Political Economy Now!–the history of the Political Economy struggle at Sydney University–Evan Jones, Frank Stilwell and Steve Keen will discuss the struggles inside the university economics departments and their significance, not only for teaching, but for the world economy itself.
Economic debate in Australia today reminds me of one of the great lines in The Rocky Horror Show. As he invites Brad and Janet to meet Rocky, Frank-N-Furter taunts Janet with the lines:
I would like–if I may–to take you on a strange journey…
“I see you shiver with anticipation!
Thanks again to blog member Evan Harris for compiling this weekly list, and for blog members passing on their suggestions. If you see any article or blog entry that you think deserves recording for posterity, send the link to gfcwrap at gmail.com.
Two prominent economics textbook writers have recently written that the Global Financial Crisis (GFC) shows that the world needs more economics rather than less.
Writing in the New York Times, Gregory Mankiw could see some need to modify economics courses a bit in response to the GFC, but overall he felt that: