Archive for February 27th, 2012

The return of schools of thought in macroeconomics..

February 27, 2012

A fab post from Simon Wren-Lewis of Oxford University.

Just five years ago, macroeconomists talked about a new synthesis, bringing together Keynesian and Classical ideas in a unified, microfounded theoretical framework. Following the Great Recession, it appears that mainstream macroeconomics has once again split into schools of thought. This column explains why macroeconomics, unlike microeconomics, periodically fragments in this way.

I am not going into how the recession has led to return of debate over macro schools.

But why macro fragments this way?


How will sanctions on Iran impact oil markets….

February 27, 2012

A nice research piece from Philip Verleger of PIIE.

Both US and Eu have imposed steep sanctions on Iran. US has even said that either you trade with us or trade with Iran. This has led to concerns over world economy as Iran happens to be a major oil supplier. Sanction on Iran could disrupt oil supplies from Iran and higher oil prices. This could threaten recovery of world economy for the umpteenth time since the crisis broke out.

Verleger says much of this seems to be hyped.


Reasons for Euro crisis – Republican story, the German story, and the truth…..

February 27, 2012

Even though people may not agree to Paul Krugman most of the time, they have to agree that no one matches him in econ writing…He really is gifted when it comes to making a point…

In his recent post he looks at reasons for Euro crisis. He says people discuss three main reasons for the Euro crisis:


Daron Acemoglu is blogging!

February 27, 2012

Daron Acemoglu and James Robinson have written a book called Why Nations Fail. He discusses the upcoming book in the interview here. The book is sure to become a bestseller when it releases on 20 Mar 2012.

The duo have started blogging bringing some key examples/insights from their work.

There have already been two superb posts on why Uzbekistan fails as a nation. It has high education enrollment and literacy rates. But fails as it has some really sad extractive institutions.

Great reading and more to come…




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