Neoclassical Economics and Domain Assumptions

How the learned practice sophistry

by Joe Blackwell

A recent paper authored by two mainstream neoclassical economists [1], Salomon Faure and Hans Gersbach, has caused quite a stir amongst prominent heterodox economists such as Steve Keen and Richard Murphy. The paper seeks to compare and contrast two opposing models of commercial bank lending behaviour (endogenous money model and loanable funds model). Continue reading “Neoclassical Economics and Domain Assumptions”

IMF deal is bad for Argentina, not good

Mainstream & Zerohedge got it wrong

by Diego Ramiro Lattes

This is a reply to Tyler Durden’s ZeroHedge article regarding Argentina and the latest IMF loan given to the country. In the aforementioned article some incorrect assumptions are made about Argentina, particularly in regards to the country’s future and the international economy. I intend to dispel these erroneous views. Hopefully, when the facts change, Durden will change his mind… Continue reading “IMF deal is bad for Argentina, not good”

Jordan Peterson & Bret Weinstein: UBI, Rent-Seeking, and Inequality

A Great Joe Rogan Podcast excerpt

by Serban V.C. Enache

Jordan Peterson comments about Inequality and Universal Basic Income. He admits that too much inequality destabilizes the system and should be combated and even admits that a Universal Basic Income would be a good solution in this regard, albeit he loathes the policy itself. Continue reading “Jordan Peterson & Bret Weinstein: UBI, Rent-Seeking, and Inequality”

How to Leave the Euro

A more or less Practical Guide

by Serban V.C. Enache

1) The Government spends and taxes in its own free floating fiat currency. It no longer accepts euros (or any other currency) in payment of Government (central and local) fines, fees, taxes, imposts etc.

2) The Government sector (aka the Treasury and the Central Bank) establishes a desired conversion rate between the new currency and the euro. For example, the Central Bank offers to sell 1 unit of new currency for 1 euro at a slight premium, say 0.5 or 1 percent.

3) No compulsory conversion of euro contracts into new currency contracts. It is enough to establish a level of demand for the new currency (giving it extrinsic value) through sound tax policy and adjust supply of said currency to the desired price. Continue reading “How to Leave the Euro”

Cuba: Sectoral Balances, Unemployment Rate

by Serban V.C. Enache

Between 2008 and 2015, the Cuban Government ran fiscal deficits. In 2018, the Foreign sector ran a financial surplus against Cuba of almost 4% of the country’s GDP; in 2009 and 2012 the surplus was near zero, and in 2013 it reached a surplus of 1.4 of GDP. Continue reading “Cuba: Sectoral Balances, Unemployment Rate”