Scott Sumner points us to this interesting proof that the Keynesian economic model must be true. For the Financial Times is crowing about the fact that when government spending rises then so does GDP.

Just how important is money? Few would deny that it plays a key role in the economy.­ During the Great Depression of the 1930s, existing economic theory was unable either to explain the causes of the ...

Forbes contributors publish independent expert analyses and insights. Dr. Goodman offers market-based solutions to public policy problems. Until we entered the Great Recession, most economists ...

This study employs the Mundell (1963) and Fleming (1962) traditional flow model of exchange rate to examine the long run behaviour of rupee/US $ exchange rate for Pakistan economy over the period 1982 ...

Economists’ ideas are far more powerful than is immediately obvious. As the economist John Maynard Keynes once wrote: “Practical men, who believe themselves to be quite exempt from any intellectual ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation This paper proposes a “quasi-agnostic” sign restriction procedure to identify structural shocks in frequentist structural ...