Articles
Articles and analyses from the INET community on the key economic questions of our time.
Why Economics Needs Economic History
The current economic and financial crisis has given rise to a vigorous debate about the state of economics, and the training which graduate and undergraduates economics students are receiving. Importantly, among those arguing most strongly for a change in the way that young economists are trained are the ultimate employers of these students, in both the private and the public sector. Employers are increasingly complaining that young economists don’t understand how the financial system actually works, and are ill-prepared to think about appropriate policies at a time of crisis.
The End of 'Financialization'
The Lehman Crisis and the Unfinished Business of Financial Reform
what have we learned from the crisis and what should we have learned?
Simon Johnson: The Problem of Too Big to Fail Is Even Bigger Than Before 2008
Simon Johnson, Professor at MIT and former chief economist of the IMF, calls for much higher capital requirements for big banks.
Europe: Is the Union over?
Dilemma Not Trilemma: The Global Financial Cycle and Monetary Policy Independence
The global financial cycle has transformed the well-known trilemma into a ‘dilemma’. Independent monetary policies are possible if and only if the capital account is managed directly or indirectly. This column argues the right policies to deal with the ‘dilemma’ should aim at curbing excessive leverage and credit growth. A combination of macroprudential policies guided by aggressive stress鈥恡esting and tougher leverage ratios are needed. Some capital controls may also be useful.
Bring on the Bubble: William Janeway on the Future of Green Technologies
Where will today’s innovation come from?
Understanding Bank Liquidity
When Is the Time for Austerity?
Recent austerity policies have been guided by ideology rather than research. This column discusses research that reconciles disparate estimates of fiscal multipliers in the literature. It finds that common identification assumptions are problematic. Matching methods based on propensity scores show how contractionary austerity really is, especially in economies operating below potential.
Did Capitalism Fail? The Financial Crisis Five Years On
Did the global economic collapse in 2008 stem from structural failures in the capitalist system?
Thirteen Ways to Split a Cake*
The Entrepreneurial State: Debunking Public vs. Private Sector Myths
is the public sector really sclerotic and conservative in contrast with a dynamic and innovative private sector?
On the Link between Inequality, Credit, and Macroeconomic Crises
To what extant do existing mainstream models properly address issues such as heterogeneity and interactions, which are considered central ingredients to understand economic crises as emergent, endogenous phenomena.
Economics Needs Replication