Archive for October, 2009

Ecuador, Bolivia Show that Even Small Developing Countries Can Pursue Independent Economic Policies, Stand Up for Their Rights, and Win

October 30, 2009 3 comments

Among the conventional wisdom that we hear everyday in the business press is that developing countries should bend over backwards to create a friendly climate for foreign corporations, follow orthodox (neoliberal) macroeconomic policy advice, and strive to achieve an investment-grade sovereign credit rating so as to attract more foreign capital.

Guess which country is expected to have the fastest economic growth in the Americas this year?   Read more…

Trading on Thin Ice

As negotiated by the Bush administration, the United States-Colombia Free Trade Agreement could cause or accentuate a financial crisis. Such a possibility would not only harm Colombia‘s development prospects and further politically destabilise an important US ally, but also jeopardise the very US exporters and workers that the agreement at least in theory would boost.   Read more…

the crisis and the culpability of macroeconomic theory

October 27, 2009 8 comments

It is the ideas at the heart of modern macroeconomics which provided the intellectual justification of the economic policies of the past 10 to 15 years.  They bear a direct responsibility for the serious nature of the crash.   Read more…

The Keynes Solution

October 24, 2009 13 comments
Below is a letter I set to the letters to the Editor Department of THE  ECONOMIST to respond to an unfair comment that the book reviewer made regarding my book, THE KEYNES SOLUTIONRead more…

Climate change – why we can afford to stop it

October 24, 2009 3 comments

I haven’t been writing much about the state of economics per se lately, but I am deep into the same issues in another venue: the economics of climate change. The same old mistaken theories are said to have “proved” that the optimal climate policy is to do very little, and do it very slowly.

For a recent round in the struggle against this nonsense, see the report co-authored by a group of 8 economists, “The Economics of 350.” (Yes, we can afford to save the planet; if not, what were saving all that money for?) A short summary with links to the main report can be found in my on-line article at Yale Environment 360, . The report is sponsored by “Economists for Equity and Environment,” a fairly new, growing organization which is one of the hopeful signs in the U.S. economics profession lately – see . In addition to practical work aplenty that can be found there, be sure to read the group’s manifesto, “Real People, Real Environments, and Realistic Economics.”

– Frank Ackerman

The Economics Profession of the Future?

October 22, 2009 5 comments

“If you wish to depress yourself about the future of economics,” writes” Geoff Hodgson, “then read the attached.”  You can read it at