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The State of Macro part two

cyberianpan

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Oct 30, 2015
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On another site I alluded to some of the constraints of macroeconomics

http://www.politics.ie/forum/economy/241775-state-macro.html


I intend posting a deeper thread outlining some predicates that underly those constraints.  I will get to that in coming days

For now though I'll highlight some of what is known:

1) Microeconomics : fundamental linkage of micro to macro will never be possible
2) Determinism : aspects of macroeconomics are wholly indeterminate, a least some of the deterministic aspects of macro will result in intractable problems
3) Human liberty: free markets are a necessary but not sufficient condition for human liberty
4) Prosperity: free markets are the best known method for highest mean and median prosperity
5) Data: data on many aspects of the markets remains poor and governments ahould intervene to ensure better conformed data is captured and made a public good
6) Irrational Business Cycle deflation : Keynesian intervention, i.e. increased fiscal spending,  has its merits here as does (9)
7) Endogenous bubble pop: ought to result in a speedy and necessay contraction of both the real and fiscal economies
8) Exogenous bubble pop or exogenous business cycle irrationality: requires case by case analysis and international co-ordination
9) Monetary Policy: coventional interest rate targetting policies as well as exotic polices such as quantitative easing need to be considered
10) Macroprudential regulation of financial services firms: needed for insurers, credit institutions and capital markets. This work requires global co-ordination and a staggering amount of new data collection

Cyp
 

seabhcan

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Oct 30, 2015
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I'm a firm believer in Keynes. His theories of money are only resisted by those who stand to benefit personally and short term by the failures of economics.
 
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