John ‘John’ Morrison
@J_MoAGoGo
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Former blue check . Former Queen’s Counsel
The House of the Rising Sun
Joined June 2011
This can't be true because my economics textbook told me they've maximised their happiness by choosing leisure over work.
Unemployed people kill themselves at around two-and-a-half times the rate of those in work
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Names are a matter of biology now lol
🚨Good News: The HHS has updated Rachel Levine’s official portrait at the department to include his real biological name which is Richard
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It’s got nothing to do with loanable funds or even the specifics of banking. Savings adjusts to investment through income changes. This also means that Pettis’ views of the origins of global imbalances are wrong (even if I agree with a lot of his conclusions)
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This doesn’t mean that savings constrain investment though. This is the main issue with Pettis’ work (although I agree it doesn’t come from a faulty loanable funds framework)
This is probably a good time for a regular reminder. Pettis’ understanding of bank balance sheets is perfectly fine, it’s his forte in fact. It’s MMT that has sown a lot of confusion. No, banks don’t loan out savings; but savings do end up constraining investment indirectly cause
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Ridiculous.
BREAKING: Notre Dame has declined its bowl invitation after being snubbed from the College Football Playoff👀 https://t.co/TK7H8dyo52
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Only 4 teams deserve to be in the playoff. No one else belongs in. They should never have expanded the playoff. People are arguing over teams that are clearly not deserving of being crowned national champion. Only 4 teams have earned the right to compete for that.
This is a huge half for Alabama. Because there is no way you can let THAT team we saw in the first half move on to the playoff.
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that'll be because everything that you lot call a crisis of masculinity is very transparently a crisis of male heterosexuality in response to women having genuine agency in dating decisions for the first time
Joking aside, I think it’s a little underrated that the various crises of masculinity seem not to impacting gay men.
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Labour are forcing the poorest young people to take shit jobs so they can provide employers with cheap labour. This is a subsidy to employers to offer low paid work. Young people risk losing benefits under UK welfare reforms https://t.co/XuCHLPoBMK via @ft
ft.com
Youths will have to accept offers of work or training as part of government plan, says McFadden
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FBI's Honolulu field office briefing law enforcement on the threat of nihilism https://t.co/pa9HFDuLSv
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BYU looking comfortable running it up the middle, winning at the point of attack. Very different from the first time these two played.
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I should also say that this is not a critique that applies to *ALL* mainstream macro models. Heterogenous agent models fix some of these issues for instance
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Money is important because of messy issues like time and unquantifiable uncertainty. By assuming things that don’t exist (a Walrasian auctioneer and rational expectations) you create a model incapable of describing real economies
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The important point to grasp is that the standard approach to macro - optimising microfoundations - renders standard macro models completely useless in describing real world economies where money is obviously important.
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Adding nominal rigidity and monopolistic competition does not create short run non-neutrality of money because the microfoundations at the core of the model don’t necessitate any need for money
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But the Fisher equation is an optimising condition where agents trade off monetary and real returns. This cannot be derived in these models where money has no logical utility. Logically speaking monetary policy is still irrelevant in these models.
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But there’s a sleight of hand in this approach as the “real rate” is actually the Fisher equation (pictured) where due to nominal rigidity the expected inflation term can’t adjust with the nominal rate
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