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Within the professional lifetimes of current economists, such as Perry Mehrling, it was necessary for Columbia to accept published monographs as the basis for his PhD, as he could not get his work on money and banking published in 'top journals'. But you can dismiss this if you will. I cite it as Mehrling was the one from whom I learned about money and banking. And I see the stranglehold that such figures, along with the practices of the Fed have on what is acceptable in the economics profession as being very detrimental to what our society needs to do to create a livable and sustainable society. This might not affect you so directly as you are not currently on an academic track.
Wait too long for needed changes and the very possibility of such change can be eroded. That is what happened when Trump was elected. Had Obama even done what the Justice Department could do to bring Wall Street executives to account, that might have changed popular perceptions and the outcome in 2016. On the other hand, I appreciate Obama's restraint on foreign policy, especially as contrasted with Hillary. Hillary certainly is and has been her own person. In this election she might have done better to listen more to Bill and less to Mook and Podesta. And while having control of the DNC almost as an inheritance and Hillary's use of the DNC did stymie Sanders, that was and is indefensible as a practice for primary elections. And it did not work out too well this time.
Twice in the last eight years the selection of very centrist Democratic candidates for President has resulted in enormous missed opportunities. In 2009 we could have reset regulation of Wall Street to an updated version of what FDR bequeathed, but Obama was never going to do that. Opportunity missed. Then there is Sanders in 2016. Another opportunity missed. Are we ever going to learn? I hope so for your sake, as you might not be able to retire in place in your current home if climate change continues to exceed generally acceptable expectations. At least you are on the Gulf coast. The Atlantic coast will be worst and soonest hit. "It is not necessary to have hope in order to persevere."
This puts Stiglitz and Solow outside the mainstream culture of economics, which doesn't police partisan hackery as long as it is politically correct partisan hackery. But it does nothing to put them outside the mainstream research tradition.
- Jake Friends come and go. Enemies accumulate.
Stiglitz's most famous research was on screening, a technique used by one economic agent to extract otherwise private information from another. It was for this contribution to the theory of information asymmetry that he shared the Nobel Memorial Prize in Economics in 2001 "for laying the foundations for the theory of markets with asymmetric information" with George A. Akerlof and A. Michael Spence. Before the advent of models of imperfect and asymmetric information, the traditional neoclassical economics literature had assumed that markets are efficient except for some limited and well defined market failures. More recent work by Stiglitz and others reversed that presumption, to assert that it is only under exceptional circumstances that markets are efficient. Stiglitz has shown (together with Bruce Greenwald) that "whenever markets are incomplete and/or information is imperfect (which are true in virtually all economies), even competitive market allocation is not constrained Pareto efficient". In other words, they addressed "the problem of determining when tax interventions are Pareto-improving. The approach indicates that such tax interventions almost always exist and that equilibria in situations of imperfect information are rarely constrained Pareto optima."
Before the advent of models of imperfect and asymmetric information, the traditional neoclassical economics literature had assumed that markets are efficient except for some limited and well defined market failures. More recent work by Stiglitz and others reversed that presumption, to assert that it is only under exceptional circumstances that markets are efficient. Stiglitz has shown (together with Bruce Greenwald) that "whenever markets are incomplete and/or information is imperfect (which are true in virtually all economies), even competitive market allocation is not constrained Pareto efficient". In other words, they addressed "the problem of determining when tax interventions are Pareto-improving. The approach indicates that such tax interventions almost always exist and that equilibria in situations of imperfect information are rarely constrained Pareto optima."
And currently, he is weighty activist in his critique:
Joseph Stiglitz Says Standard Economics Is Wrong. Inequality and Unearned Income Kills the Economy -- Evonomics.com
Greg Mankiw is a half-decent mathematician masquerading as a serious economist.
Once again, "mainstream" isn't whatever gibberish you read on some idiot blog. If you want mainstream, read Krugman and you "heterodox" friend, Stiglitz. Both of whom are more representative of the mainstream that these people you keep bringing up.
Stiglitz's consumption function was the foundation for both his and Krugman's Nobels. Solow's growth model is literally the first model they teach you in every Macro 201 class. We in "not even wrong" territory here.
As for the Hillary/Bill/conspiracy theory on the DNC and Bernie bit -- now you want her to listen to Bill, the Unholy God of "Neoliberalism". Helpfully demonstrating what a bunch of horseshit the whole conflict was the whole time.
Complete gibberish. Be nice to America. Or we'll bring democracy to your country.
God damn, that comment from me was like an Autocorrect Holocaust. Sorry. Be nice to America. Or we'll bring democracy to your country.
Nothing about a consumption function on the Wikipedia page on Stiglitz.
What is taught in freshman courses is not necessarily mainstream in policy building. Economics is a motley subject, with a lot of speculative assumptions, ideological deductions, hand waving with graphs and some serious math, mechanism design. The same economist can easily produce something standard for a freshman course and a theory against prevailing operative streams.
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