Tuesday, May 14, 2013

Tom Palley on Gattopardo economics

New paper by Tom Palley on the failure of economics (mainstream) after the crisis. From the abstract:
Gattopardo constitutes change that keeps things the same. Gattopardo is relevant for understanding the economics profession's response to the financial crash of 2008. This paper explores gattopardo economics as it applies to the issues of the macroeconomics of income distribution; the global financial imbalances; and inflation policy. Gattopardo economics adopts ideas developed by critics of mainstream economics, but it does so in a way that ignores the thrust of the original critique and leaves mainstream analysis unchanged. Gattopardo economics makes change more difficult because it deceives people into thinking change has taken place. By masquerading as change, it crowds-out space for real change. That makes exposing gattopardo economics a matter of vital importance.


  1. what does Barbosa being fired mean?

    1. He was not fired. He has wanted to leave, as far as I know, for a while. Main difference is that nobody that is in favor of fiscal expansion, and of growing at a descent pace is left. Expect a relatively poor performance in terms of growth in the next couple of years.


Catching up and falling behind in historical perspective

The figure below, from a recent piece in the Wall Street Journal , shows the catching up of the South. Note that most occurs after the New ...