Quantum Macroeconomics: An Assessment

There is a general agreement that the mainstream macroeconomics has largely failed to predict or correctly estimate the last economic and financial crisis, see the introduction here on the website of the Institute for New Economic Thinking. This failure has motivated more than ever different heterodox approaches to macroeconomics.

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Modern Macroeconomics and the Austrian School

The ideas of Austrian economic school are becoming more popular. However when you look at the current debates in macroeconomics (especially the academic ones) you will barely find any place for Austrian school ideas. Although most of today academic macroeconomics can be thought of as Keynesian (Greg Mankiw thinks that the old debate between freshwater and saltwater macroeconomics is dead), and although many old ideas have been successfully used recently (like Pigou’s theory of business cycle), there hardly is any place for Austrian ideas.

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The European Sovereign Debt Crisis and the Debate on Deficit Spending

The European sovereign debt crisis continues to attract a lot of attention on both sides of the Atlantic. The analysts have proposed many several potential causes for this crisis and, obviously, the lack of fiscal discipline, including the issue of deficit spending, is widely considered as one of the most important ones. An analysis of this issue can shed some light on the problem of deficit spending which is highly debated in the United States in the last years.

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