Introduction The IS-LM model is the foundational model used in New Keynesian Economics to try and predict what will happen to aggregate demand if economic conditions change. There are much more advanced versions of IS-LM in practice today, but I will just be explaining the most basic version. I will be assuming a closed economy…
Introduction New Keynesian Economists believe that in the long run the economy will behave as described in the proceeding articles, with it naturally moving toward a state of full employment and stable prices. However, as the economy is very rarely in these states, New Keynesian Economics proposes a series of ways in which the economy…
Introduction In my first three blog posts on New Keynesian economics, I’ve ignored Foreign trade from all of our examples by assuming a closed economy (one that doesn’t trade with the outside world). This simplified previous explanations (without distorting the key points), but now it’s time to consider Foreign Trade. I’ll explain this from the…
Introduction According to the New Keynesian view Money does not matter in the long run, but it does matter in the short run. This refers to the idea that printing money cannot lead to long-term economic growth, but it can lead to short-term economic growth. Put another way, in the long- run printing money as…
Introduction We are ready to take our first peek under the bonnet of New Keynesian Economics, and where better to start than the Long-run. The Long run is the supposed natural state of the economy, where all factories and workers are fully employed, and the economy is producing goods and services at full capacity (given…
Introduction New Keynesian Economics is currently the most popular mainstream economic theory. It’s assumptions, equations and conclusions are the intellectual rational for most government advisors and central bank policy makers in the Western world, meaning that for better or for worse, this theory is loose in the real world. This blog series aims to do…
Much of my identity is built on memories. But my memories are not a solid point of reference on which I can rely on. Buddhism and meditation practice shows me that there is not a consciousness that you can easily identify, and emotional science suggests that my emotional experiences are largely culturally learned reactions – just a by product of my brain attempting to save computational power by using simulations as shortcuts. What am I to make of all of this?
I’m not writing this blog to talk about the Living Planet Report, I’m writing this because it angers me to live in a society where the mainstream media, national governments and public aren’t talking about three quarters of all living animals dying in the last 50 years. Our society has managed to become incredibly technologically advanced, but also pathologically disconnected from nature, it’s intrinsic value and it’s utterly essential role in our own survival. So how did we become so cumulatively stupid?