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A Few Followup Links

The previous post got quite a bit of attention — more, I think, than anything I’ve written on this blog in the dozen years I’ve been doing it. I would like to do a followup post replying to some of the comments and criticisms, but I haven’t had time and realistically may not any time soon, or ever. In the meantime, though, here is some existing content that might be relevant to people who would like to see the arguments in...

econlog.econlib.org econlog.econlib.org

Why are economists losing prestige?

Ezra Klein sees the Biden administration as downgrading the role of economists: Biden has less trust in economists, and so does everyone else. Obama’s constant frustration was that politicians didn’t understand economics. Biden’s constant frustration is that economists don’t understand politics. Multiple economists, both inside and outside the Biden administration, told me that this is an administration in which economists...

econlog.econlib.org econlog.econlib.org

Robert Mundell, RIP

Robert Mundell recently passed away at the age of 88. Mundell was one of the most important macroeconomists of the past 100 years, and his work greatly influenced my own research. While he made important contributions in many areas of international trade and macro theory, here I’ll focus on one aspect of his work. There are three basic approaches to monetary economics.  The most famous is the rental cost of money approach, which...

econlog.econlib.org econlog.econlib.org

How much should we borrow?

A commenter directed me to a Noah Smith post that begins as follows: One of the most important questions in macroeconomics is one that economists have curiously chosen not to study. That question is: “How much can the government safely borrow?” In my view, this is the wrong question.  The right question is: How much should the government borrow? The term “safely” is quite vague.  Safe from what?  From default?  From...