This paper explores zero lower bound (ZLB) economics. The ZLB is widely invoked to explain stagnation and it fits with the long tradition that argues Keynesian economics is a special case based on nominal rigidities. The ZLB represents the newest rigidity. Contrary to ZLB economics, not only...

This paper reflects on the history and enduring relevance of Keynes? economics. Keynes unleashed a devastating critique of classical macroeconomics and introduced a new replacement schema that defines macroeconomics. The success of the Keynesian revolution triggered a counter-revolution that...

Macroeconomics deals with the household and the firm through the automatic mechanism of aggregate demand and aggregate supply until and unless demand deadlock or supply side rigidities affect. In these cases of demand deadlocks and supply side rigidities, intervention seems to be a general...

Macroeconomics deals with the household and the firm through the automatic mechanism of aggregate demand and aggregate supply until and unless demand deadlock or supply side rigidities affect. In these cases of demand deadlocks and supply side rigidities, intervention seems to be a general...

Keynes had many plausible things to say about unemployment and its causes. His "mercurial mind", though, relied on intuition, which means that he could not strictly prove his hypotheses. This explains why Keynes's ideas immediately invited bastardizations. One of them, the Phillips curve...

Electoral support for social democracy in Western Europe is in free fall. The implosion of social democracy is largely self- inflicted, because 'Third Way' social democracy alienated its traditional supporters by (a) a deliberate move to the non- reformist, status-quo oriented macroeconomics of...