Saturday, November 16, 2013

New vs. Old Keynesian Stimulus (Cochrane)

John Cochrane is a professor at the Univ. of Chicago in financial economics.

His blog, The Grumpy Economist, is quite good.

Friday’s post, New vs. Old Keynesian Stimulus, is simple, clear, and excellent.  Before you talk about the truth of the models, the evidence or lack thereof, or argue about good and bad, better and worse, understand the assumptions.  I’ll leave his post to speak for itself.

Also, if you have any interest in financial economics I’d highly recommending returning to the main section of his blog and reading the posts about his father-in-law (E. Fama)’s recent Nobel prize, shared with two others.  While there read about the two others (Shiller and Hansen).   

If you don’t mind a little math, and want to read a nice in-depth survey of asset-pricing research, you might also try Cochrane’s “Presidential Address: Discount Rates.”  It can be found here:

For an excellent book length review of research on expected returns (with less math), Expected Returns By Antti Ilmanen (a Chicago PhD) is well-regarded, and worth reading twice. And what is more he’s a Finn – how often do you see that? 

No comments:

Post a Comment