Monday, July 14, 2014

the Great Clusterfuck and deflation

DEPARTMENT OF "WTF?!" CHRIS HOUSE ON TRADITIONAL MACROECONOMIC MODELS AND THE GREAT RECESSION by DeLong

Unemployment, aggregate demand, and search/matching by Nick Rowe

I don't quite understand it, but Krugman says Keynesians expected more deflation/disinflation from the aggregate demand shocks in the U.S. and Japan. (What about Europe?) What if QE explains it?

Neoclassical and New Keynesian models seem to be poorly with distributional issues. Maybe it was something to do with that.

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