I should state out front that I do not believe that complex systems subject to stochastic shocks can be modeled. Each essay is an attempt to slice out an organ of economic activity and conduct a pathological examination of it. Some essays are more persuasive than others.
I should state out front that I do not believe that complex systems subject to stochastic shocks can be modeled. Ben Bernanke and his collaborators at least do not attempt the economic equivalent of the climate doommongers' general circulation models, that foolishly imagine they can model an entire complex system.
Each essay is an attempt to slice out an organ of economic activity and conduct a pathological examination of it. Some essays are more persuasive than others. Eichengreen proposed that the deflation was made infectious across borders by the gold standard.
Bernanke shows that leaving the gold standard allowed guiders of monetary policy to inflate currency, which, in turn, Bernanke essays debtors to get back on their feet, put themselves back to work and hire others.
But it was, obviously, far from a complete solution to the problem of persistent falling output. At the time, Bernanke says, going off gold was criticized as a "beggar-thy-neighbor" policy, but we now see that inflation was a good thing.
There is nothing new to the idea.
Bernanke does not mention them. What Bernanke and the macroeconometricians have done is quantify the Brain Trusters' insights. The quantification is only moderately impressive.
I studied economics through economic history, and when you read those papers you get a lively sense of how inadequate economic data are. Bernanke's elaborate equations are based on shaky inputs. Furthermore, as many footnotes reveal, leaving out a parameter often has no "substantial" effect on the results.
This is a frequent feature of climate modeling, too. It is often used to suggest that the results are "robust" to the parameters that do affect results, but it probably is more generally to be interpreted as a strong signal that the theory has substantial defects.
When you get the same outputs no matter what the inputs are, time to rethink the theory. To their credit, Bernanke and his students do rethink the theory.
When it comes to labor, though, not enough. While the view that gold is bad for trade seems solidly established, Bernanke has it acting almost in a vacuum. Of course, Bernanke's interest is in why the Depression persisted, not in how it began.
The second set of essays is much less impressive, in which Bernanke attempts to learn why wages were "sticky," that is, why real wages went up for those who had any income at all.
In theory, wages should have gone down until workers got so little that they would be worth hiring again. Bernanke shows, persuasively, that real wages did stay high during the Depression, even setting aside the fact that money bought more as currency deflated.Bernanke on Bernanke Essay Words 6 Pages In a recent article in Bloomberg, reporter Jeannine Aversa gives some history and advice for Ben Bernanke, Fed Chief from Ben Bernanke the scholar.
New Left Review 87, May-June Save a PDF file; Send an email; Print article; wolfgang streeck HOW WILL CAPITALISM END? There is a widespread sense today that capitalism is in critical condition, more so than at any time since the end of the Second World War.
 A version of this text was delivered as the Anglo-German Foundation Lecture at the British Academy on 23 January Subprime Mortgage Crisis – The expansion of mortgages to high-risk borrowers, coupled with rising house prices, contributed to a period of turmoil in .
EDGAR DEGAS WAS BORN OF ARISTOCRATIC BANKERS in Paris on July 19, Until his death in , Degas cherished an attachment to his grandfather, Hilaire De Gas, a well-to-do banker of the French aristocracy. Developing his artistic talent when 18 years old as a copyist at the Louvre in Paris.
Essays on the Great Depression Ben S. Bernanke Princeton, N.J.: Princeton University Press, , pp. Economists’ fascination with the description and interpretation of the.
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