Brief History of Macroeconomics and The Origins of Freshwater vs. Saltwater Economics

I and others, particularly Paul Krugman, occasionally make reference to "freshwater" vs. "saltwater" economics.  Here's a little background to explain the terms and, I hope, shed a little light on current disputes in macroeconomic theory. First, let's go back in time.  The stuff that economists study, namely the economy, economic behavior, and markets, really emerged as it's … Continue reading Brief History of Macroeconomics and The Origins of Freshwater vs. Saltwater Economics

Quotes from the Freshwater/Saltwater Wars

Brad Delong summarizes and links some quotes from dueling Freshwater (Classical Macro) vs. Saltwater (Keynesian and others) at Macro Wars The conflict in many ways boils down to this: is economics to be philosophy where internal, logical consistency of the theory is most important and absolute faith in the theory is commanded of all true-believers … Continue reading Quotes from the Freshwater/Saltwater Wars

Krugman on How Did Economists Get It So Wrong? – Excellent

Long, but excellent reading on the recent (last few decades) of the history of macro thinking.  I think Krugman understates some issues, but much of it is good.  I recommend. It’s hard to believe now, but not long ago economists were congratulating themselves over the success of their field. Those successes — or so they … Continue reading Krugman on How Did Economists Get It So Wrong? – Excellent