Welcome. I started this blog for my economics students, but any other fans of economics (and science or history) are welcome. My goal for this blog is to provide background on current events. Hopefully, the links to interesting newspaper articles, videos, data, books, web sites, and research will convince you this stuff really is fascinating and relevant.
The Lucas Critique implications for current policies
I can't resist sharing this article about Robert Lucas, one of the most influential economists of the last 50 years. In an interview, Lucas is asked how his findings relate to the current economic slowdown. Lucas suggests that while a stimulus might have been the right idea in 2008, its time has past. He now supports structural reforms that realign incentives towards growth. This dovetails nicely with his research on the importance of people's expectations and incentives.