Skip to main content

Eatwell on the relevance of pure theory

Eatwell on the relevance of theory for policy debates, introduced by Arestis. John used to say in class that no debate was ever solved by empirical analysis.

Hat tip to Alejandro Fiorito and Franklin Serrano.

Comments

  1. I enjoyed this video. I like the way Eatwell points out who Keynes is partly responsible for promoting the view that the neoclassical model would hold if it wasn't for certain 'rigidities'. In fact, it was always my reading that Keynes supporting this view (which, I found conflicted with the account of his disciples).

    That said, I find it truly unfortunate that Eatwell's final word on Solow's book "The labor market as a social institution" comes across as negative. The book is fantastic, and, I would argue, goes a long way to dismiss the conventional, textbook, view of the labor market. The listener would never know this based on Eatwell's comments. That's too bad.

    ReplyDelete

Post a Comment

Popular posts from this blog

What is the 'Classical Dichotomy'?

A few brief comments on Brexit and the postmortem of the European Union

Another end of the world is possible
There will be a lot of postmortems for the European Union (EU) after Brexit. Many will suggest that this was a victory against the neoliberal policies of the European Union. See, for example, the first three paragraphs of Paul Mason's column here. And it is true, large contingents of working class people, that have suffered with 'free-market' economics, voted for leaving the union. The union, rightly or wrongly, has been seen as undemocratic and responsible for the economics woes of Europe.

The problem is that while it is true that the EU leaders have been part of the problem and have pursued the neoliberal policies within the framework of the union, sometimes with treaties like the Fiscal Compact, it is far from clear that Brexit and the possible demise of the union, if the fever spreads to France, Germany and other countries with their populations demanding their own referenda, will lead to the abandonment of neoliberal policies. Aust…

A brief note on Venezuela and the turn to the right in Latin America

So besides the coup in Brazil (which was all but confirmed by the last revelations, if you had any doubts), and the electoral victory of Macri in Argentina, the crisis in Venezuela is reaching a critical level, and it would not be surprising if the Maduro administration is recalled, even though right now the referendum is not scheduled yet.

The economy in Venezuela has collapsed (GDP has fallen by about 14% or so in the last two years), inflation has accelerated (to three digit levels; 450% or so according to the IMF), there are shortages of essential goods, recurrent energy blackouts, and all of these aggravated by persistent violence. Contrary to what the press suggests, these events are not new or specific to left of center governments. Similar events occurred in the late 1980s, in the infamous Caracazo, when the fall in oil prices caused an external crisis, inflation, and food shortages, which eventually, after the announcement of a neoliberal economic package that included the i…