Economics News with a Historical Perspective
December 21, 2014
The Econ Review features a historical perspective on economics news and opinions with daily updates. All original material is copyrighted. Off-site references open in new windows.
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U.S. Budget Deficit
In the News
The Phillips Curve
John Cochrane uses very similar Phillips Curve charts to review recent history and current issues.
Euro Roller Coaster
The wild ride continues.
The latest news and views.
Oil Shocks Hit Supply Side
In the 1970's, oil prices rocketed to levels completely out of line with historical experience. The underlying cause was use of crude oil prices and availability as political weapons after war in the Middle East. Economists scrambled to understand the implications of these events for macroeconomic models. Models had not previously incorporated energy as a factor of production because the price of energy was relatively constant and thus not useful in explaining fluctuations in the economy. This was certainly not the case in the 1970's.
President Nixon Imposes Wage and Price Controls
August 15, 1971. In a move widely applauded by the public and a fair number of (but by no means all) economists, President Nixon imposed wage and price controls. The 90 day freeze was unprecedented in peacetime, but such drastic measures were thought necessary. Inflation had been raging, exceeding 6% briefly in 1970 and persisting above 4% in 1971. By the prevailing historical standards, such inflation rates were thought to be completely intolerable.
The Keynesians vs. the Monetarists
November 14, 1968. The debate between the Keynesians and the monetarists reached a milestone in an exchange between Milton Friedman and Walter W. Heller. The Seventh Annual Arthur K. Salomon Lecture at the Graduate School of Business Administration at New York University is recorded in Monetary vs. Fiscal Policy: A Dialogue, Milton Friedman and Walter W. Heller, W.W. Norton & Company, Inc.: New York (1969).
The Theory of the Firm and the Theory of the Consumer form the foundation for microeconomics. The Classic Economic Models collection includes the most important models from each, covering both the supply and demand for goods and the supply and demand for labor.
Additional models of interest are available at Classic Economic Models.
Check the directory of economics clubs to see if your club is listed. Links are free.