Category: Economics

Is a little economics dangerous?

A few weeks ago I had a brief exchange on Twitter with @unlearningecon about the possibility of introductory economics instruction going beyond teaching the neoclassical model of perfect competition and exploring alternatives. If I remember correctly our exchange didn’t get much beyond me saying that to do so […]

Help to Buy?

The objections to George Osborne’s latest wheeze to assist the housing market are hardly worth discussing. They are almost too obvious. And they have been rehearsed at length in relation to similar, smaller scale initiatives that have already been tried. The new “Help to Buy” scheme, announced in […]

Economical with the truth?

The agenda for this year’s Liberal Democrat Spring Conference carries the strapline Stronger economy, Fairer society. Given the parlous state of UK plc, and the deeply inequitable impacts of the Coalition austerity policy, the strapline touches on two of the biggest issues of the day. So the unwary […]

On the horsemeat scandal

The horsemeat scandal has now been with us for over a month. It has morphed from a localised concern about adulteration of one processed meat product at one supermarket chain into a Europe-wide exposé of industrialised food production and lengthy supply chains that are ripe for abuse. Many […]

Name a book that changed your life

Earlier this evening Umair Haque tweeted: Name a book that changed your life. — umair haque (@umairh) February 4, 2013   My response was: Michael Stewart’s “Keynes and after” > RT @umairh: Name a book that changed your life. — Alex Marsh (@ShodanAlexM) February 4, 2013 If anyone […]

Looking to the past on expectations of the future

The way in which economic agents form expectations about the future is one of the most important issues in economics. All economic theory has to take a position on the matter, whether it is discussed explicitly or the treatment is left implicit. For three decades now the rational […]

Is financial innovation a good idea?

Is financial innovation a good thing or a bad thing? Is it possible to tell in advance? Some might recall Warren Buffett’s comments in 2003, when he characterised derivatives as financial weapons of mass destruction, and suggest that perhaps it is. We know that novel, complex and non-transparent […]

Economic theory and intuition-based policy

For a few week’s I’ve been carrying a pdf of a working paper by one of the elder statesmen of economics – Richard Lipsey – around on my hard drive. Entitled Twenty five methodological issues in memory of Mark Blaug its focus is pretty self-evident. Today I had […]

Putting the brakes on housing booms

Property markets are frequently implicated in economic booms. It isn’t always residential property. But often it is. The last boom, which eventually triggered the Global Financial Crisis, had a strong housing market component. A while ago the Bank of England created the new Financial Policy Committee (FPC) with […]