Economics General #1

[Anonymous No.430578]

I've decided to spur greater interest and understanding of economics by creating an Economics General thread, whether you like it or not!

Plans for this class of threads include a book of the week, recent highlights in economic research or news, and updates on forthcoming economic events.

I'd like for these threads to include civil debate and discussion of differences in thinking and, well, anything economics related!

[Anonymous No.430581]

yay it's already ded

thanks guys, I knew this would happen

[Anonymous No.430588]

Currently reading Lords of Finance, enjoying it immensely. Would like to be able to read economic texts like Keynes' General Theory someday.

[Anonymous No.430589]

>>430581
This is a slow board.
Just hold the fuck on.
As for economic books, I am interested in what you guys can recommend. I am currently reading the Dutch book "De prooi", about the failures of the merger between the ABN and Amro banks, but I am close to finishing that. Any recommendations what to read next?

[Anonymous No.430590]

monitoring

[Anonymous No.430603]

>>430588
lords of finance was a really good book for me, taught me many basic concepts

the General Theory isn't such a hard read

[Anonymous No.430605]

Don't worry OP it'll pick up in the evening, most people are working right now.

[Anonymous No.430650]

>>430603
What you're looking for is shit
General theory is shit
http://www.mises.org/books/failureofneweconomics.pdf

[Anonymous No.430653]

>>430650
I can always rely on my fellow Mises shitposters.

Did you attend Mises U this year?

[Anonymous No.430662]

>>430650

[Anonymous No.430675]

economics 101

Economics is the application of science to obtaining wealth from limited resources, but for what purpose? That of an amoral sociopath of course (not the mentally ill kind).

>2edgy4me

If I could I would wish happiness for all sapient life, but I am just a human and if I were to offer what little wealth I have to someone else I could not trust them to use it responsibly. So the only purpose is to obtain wealth.

http://en.wikipedia.org/wiki/Consequentialism

All commerce is negotiation.

The services needed to facilitate negotiation are themselves an economically productive activity, getting 2 complete strangers to cooperate is like threshing wheat or shearing a sheep. If there are 1000 commodities, under a barter system each commodity would need to be set a price relative to the remaining 999 commodities, whereas if the value of each commodity were reduced to the same metric you would only have 1000 prices, someone wishing to buy an object need only ask "what's the price". Money makes it easier for people to exchange goods and services.

The mathematics of money results in some interesting conclusions and ideas, loans, shares, markets, competition, supply and demand, comparative advantage, opportunity cost, investment value, though it is important when thinking about these concepts to remember money does not exist in a mathematically perfect world. Market inefficiencies are also important, speculative bubbles, monopolies, crime, jews, corruption, fraud, insider trading, fees, taxes and so forth.

[Anonymous No.430679]

economics 101

Economics is the application of science to obtaining wealth from limited resources, but for what purpose? That of an amoral sociopath of course (not the mentally ill kind).

>2edgy4me

If I could I would wish happiness for all sapient life, but I am just a human and if I were to offer what little wealth I have to someone else I could not trust them to use it responsibly.

http://en.wikipedia.org/wiki/Consequentialism

All commerce is negotiation.

The services needed to facilitate negotiation are themselves an economically productive activity, getting 2 complete strangers to cooperate is like threshing wheat or shearing a sheep. If there are 1000 commodities, under a barter system each commodity would need to be set a price relative to the remaining 999 commodities, whereas if the value of each commodity were reduced to the same metric you would only have 1000 prices, prices are more stable, people are less likely to make a bad deal or be too cautious to make a deal at all, someone wishing to buy an object need only ask "what's the price". Money makes it easier for people to exchange goods and services.

The mathematics of money results in some interesting conclusions and ideas, loans, shares, markets, competition, supply and demand, comparative advantage, opportunity cost, investment value, though it is important when thinking about these concepts to remember money does not exist in a mathematically perfect world. Market inefficiencies are also important, speculative bubbles, monopolies, crime, corruption, fraud, insider trading, fees, taxes and so forth.

All this information can help a trader anticipate price changes in advance of most of their competitors.

[Anonymous No.430738]

Has anyone here read Freefall by Joseph Stiglitz? Any thoughts on it if so?

[Anonymous No.430742]

>>430650

Non-quantitative heterodox economists plz leave.

[Anonymous No.430763]

>>430581

Well, check to see what the other threads usually contain (hint, it's shit)

I'll spur some employment discussion.

I believe unemployment has dropped to 6.2% now. I'm not too pleased with this number though because the number of people searching for jobs is declining thus giving some buffer.

I believe the issue is that entry level jobs in specialized fields require some years of experience which people have not obtained and thus there is still a decline in middle class jobs.

[Anonymous No.430781]

>>430763
>because the number of people searching for jobs is declining thus giving some buffer.

they always say that but i'm pretty sure labour force participation has been trending up recently, correct my if i'm wrong

>entry level jobs in specialized fields require some years of experience

this is not the issue. those requirements are put up because employers face an oversupply of candidates

[Anonymous No.431284]

>>430588
>Would like to be able to read economic texts like Keynes' General Theory someday.
Gross.

[Anonymous No.431286]

>>430662
>>430653
>>430742
Butthurt pseudo-scientist pls go.

>>430738
>Joseph Stiglitz
hahah oh wow

[Anonymous No.431287]

Man, economy and state by Rothbard is all you need.

[Anonymous No.431302]

>>431286
>Butthurt pseudo-scientist pls go.
Do you know what the word fellow means?

Also, pls don't deny we are heterodox. The rejection of math by most Austrians is problematic. More and more I think Hayek's approach (though with stricter adherence to praxeology) and reforming the neoclassical school is better than Rothbard's of developing economics alone on a deserted island. Yeah Yeah, tell me how you're "right" all day long and how this is "real" scientific economics, but no one is listening to us either way.

[Anonymous No.431308]

>>431302
>austrians reject math

There's that butthurt strawman argument again.

>More and more I think Hayek's approach (though with stricter adherence to praxeology) and reforming the neoclassical school is better than Rothbard's of developing economics alone on a deserted island.
Explain how ours has much better prediction power then?

[Anonymous No.431329]

>>431308
>There's that butthurt strawman argument again.
That's a butthurt strawman "argument" right there
Haha oh wow, this is almost as predictable as Garrison's "muh triangle."

How exactly does muh heterogeneous capital analysis apply to a real economy and not just demonstrating how the Keynesian model doesn't work on a graph?

>Explain how ours has much better prediction power then?
Okay, ignore everything I said if you like, but Austrians don't accept that you can predict the future (#rekt).

>>431287
>textbook example of some guy on 4chan mixing his theory with his normative conclusions
What a great economic scientist amirite guize?

[Anonymous No.431332]

>>431329
>Haha oh wow, this is almost as predictable as Garrison's "muh triangle."
"This" being in reference to the picture.

[Anonymous No.431362]

>>431329
>How exactly does muh heterogeneous capital analysis apply to a real economy and not just demonstrating how the Keynesian model doesn't work on a graph?
because the keynesian model doesn't work at all?
ever?

[Anonymous No.431363]

>keynesian "economics"

[Anonymous No.431365]

>>431332
But that picture is exactly what keynesians are saying.

Krugman actually advocated for a pretend alien invasion to save the economy.

Keynesians are actually this stupid.

[Anonymous No.431406]

>>431362
>doesn't know a single thing about economics or what keynes contributed
>still feels he can claim it "doesn't work at all"

[Anonymous No.431425]

>>430781
USA yes? not guy you replied to but i thought the participation rate was growing and that was the reason in slightly higher unemployment then they anticipated

[Anonymous No.431614]

>>431406
>keynes contributed
What?
Nothing?
Absolute poverty and corporate fascism?

>"doesn't work at all"
Look around you, it doesn't.
Inb4 you claim we aren't using keynesian economics right now because your butthurt keynesian professor told you so.

Historically low interest rates for almost a decade is exactly what keynes would have wanted to "get us out of this mess".

It's funny that the exact opposite it what actually worked every time to cure recessions. See 1920.

[Anonymous No.431630]

>>431614
it's funny how many words you can remember and how little you understand :^)

[Anonymous No.431633]

>>431614
for one, the current system is more monetarist than keynesian. attempts at keynesian policy where dropped years ago.

>Historically low interest rates for almost a decade is exactly what keynes would have wanted to "get us out of this mess".

and what are contemporary keynesians saying about current low interest rates and how to get traction in an economy stuck in low equilibrium?

>hurr durr 1920

not comparable

[Anonymous No.431791]

>>430589
De kloof

[Anonymous No.431794]

>>430581
Nah this board has just been slow as shit since all the buttcoin shills left

Is anyone here interested in getting in academic economics? I am looking at applying for doctorate programs, but my undergrad degree was econ/finance so I have to take a shitload more math classes at a community college.

[Anonymous No.431796]

>>431794
Rev up that linear algebra.

[Anonymous No.431801]

>>431796
I already took linear algebra this summer. I have real analysis, series and sequences, probability theory, and stochastic calculus in the fall, just need to get Cs to have a chance at a top-100 program.