Monday, January 25, 2010

The Keynes and Hayek Rap

I was able to see this rap video's debut in Atlanta at the AEA and really loved it. Russ Robert and John Papola are to be commended for a job well done. For the intellectual history behind this rap video see this page. [See updates below]



Update I : On a related note here is an interesting paper titled "Hayek versus Keynes on How the Price Level Ought to Behave" (gated) by George Selgin.

Update II: On another related note, William White says the future of macroeconomics should be shaped by a synthesis of Keynesian economics, Austrian economics, and Minskian economics. I think such a synthesis would point to monetary policy that (1) targeted nominal spending and (2) implemented a robust macroprudential framework. See here for more of White's insights leading up to the crisis.

3 comments:

  1. David, I’m so glad you were able to see the preview in Atlanta. I enjoy your blog. Thanks for posting the video.

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  2. John, thanks for stopping by. I change my post to acknowledge your role. Great job!

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  3. Let's hope William White's expectations are met. It will be very helpful to have the workhorse macro model explore these themes. Provided of course we recognize that Keynesian economics has nothing to do with sticky wages and prices and everything to do with self-fulfilling expectations. Roger Farmer has a new book coming out which does embed animal spirits in the standard framework.

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