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Prof Roger Farmer

Posted: 30 May, 2018 - 13:02 with: Comments

My paper, Pricing Assets in a Perpetual Youth Model, was recently published in the Review of Economic Dynamics. The paper uses mathematics to make a point.  But the idea is simple and worth explaining in English.  Here is what I said about it when I first put out the working paper in May of 2016. 

Prof Roger Farmer

Posted: 29 March, 2018 - 15:38 with: Comments

Here is an intriguing question: How is the Large Hadron Collider like the National Institute Global Economic Model? Read on!

Prof Roger Farmer

Posted: 18 December, 2017 - 00:24 with: Comments

In a recent piece in the Financial Times, Tristan Hansen and Eric Lonergan make the case for the U.K. government to “think big and tap the bond markets to invest in a bold growth agenda for the UK economy”.

Prof Roger Farmer

Posted: 10 December, 2017 - 07:57 with: Comments

In a post in 2015 I pointed out that government debt is not a bad thing. Here, I elaborate on that idea and I ask, and answer, a simple question: how much debt do we need? My answer: 70% of GDP is a good guess.

Prof Roger Farmer

Posted: 3 December, 2017 - 21:49 with: Comments

GDP increases over time for two reasons. First, the economy produces more output because we use more labour and more capital. Second, the economy produces more output because we use better techniques over time. Traveling from London to Glasgow on a high-speed train is much faster than travelling there in a horse-drawn carriage. An increase in GDP for this second reason is called productivity growth.

Prof Roger Farmer

Posted: 20 November, 2017 - 09:39 with: Comments

In advance of Wednesday’s budget, our Research Director Roger Farmer’s blog which was first posted on 21 November 2016 is still timely and relevant. The article lists three facts about debt and deficits which are just as relevant today as they were this time last year.


The Chancellor of the Exchequer, Philip Hammond, will present his Autumn Statement to Parliament on Wednesday. In the heated debate over austerity, this piece offers three facts about debt and deficits which, I hope, will help shed light on the issues he will face.

Prof Roger Farmer

Posted: 12 November, 2017 - 23:21 with: Comments

Given the upcoming autumn budget, I have a proposal for the Chancellor to consider. Replace taxes on dividends, capital gains and inheritance with a tax on wealth. Currently these three taxes combined raise £41b in revenue. A 1.2% wealth tax on those with net wealth greater than £700,000 would raise approximately this amount with £2b to spare to help pay down the deficit. A 2% wealth tax would raise £72b and give the Chancellor breathing room to lower taxes on wage income or to provide much needed additional resources for our nurses, firefighters and police men and women.

Prof Roger Farmer

Posted: 5 November, 2017 - 23:15 with: Comments

Writing in 1999 in a widely cited paper “The Science of Monetary Policy”, three leading economists, Richard Clarida, Jordi Galí and Mark Gertler, CGG, make the case that monetary policy is a science. Although there is some truth to that claim, CGG could equally well have titled their paper; “Macroeconomics: Religion or Science?”. 

Prof Roger Farmer

Posted: 28 October, 2017 - 23:45 with: Comments

I recently came across this video link to a session held at the 2017 ASSA meetings on the ‘Curse of the Top Five’. The session was organised by Jim Heckman and involves a panel discussion with participation by Heckman, George Akerlof, Angus Deaton, Drew Fudenberg and Lars Hansen. I’m going to concentrate here on the presentations by Heckman and Akerlof.

Prof Roger Farmer

Posted: 23 October, 2017 - 11:24 with: Comments

Cloud Yip is running a series of interviews under the title of “Where is the General Theory of the 21st Century” and I was privileged to be included in that series.  Last week I put up my first post about the interview. This week’s post is the second in a series where I expand on my answers to Cloud. Here, I discuss my views on rational expectations and I talk about a new version of search theory, Keynesian Search Theory, that underpins my joint papers with Giovanni Nicolò on “Keynesian Economics without the Phillips Curve” and with Konstantin Platonov, “Animal Spirits in a Monetary Model”. 

 

Prof Roger Farmer

Posted: 15 October, 2017 - 23:16 with: Comments

A couple of months ago, I had the pleasure of speaking with Cloud Yip. Cloud is running a series of interviews under the title of “Where is the General Theory of the 21st Century” and I was privileged to be included in that series.

Prof Roger Farmer

Posted: 9 October, 2017 - 14:46 with: Comments

Today’s announcement of a Nobel Prize for Richard Thaler is richly deserved and I congratulate the Nobel committee for recognising the importance of the growing influence of behavioural economics that Richard helped to create.

Prof Roger Farmer

Posted: 2 October, 2017 - 08:00 with: Comments

Policy makers at central banks have been puzzled by the fact that inflation is weak even though the unemployment rate is low and the economy is operating at or close to capacity.

Prof Roger Farmer

Posted: 24 September, 2017 - 22:53 with: Comments

Like most academics, I spend much of my time asking for money from research councils. So, it is a welcome change for me to sit on the other side of the table in my role on the management team of Rebuilding Macroeconomics. This is an initiative located at the National Institute of Economic and Social Research in the UK and funded by the Economic and Social Research Council.

Prof Roger Farmer

Posted: 18 September, 2017 - 09:23 with: Comments

This is my final post featuring research presented at the conference on Applications of Behavioural Economics and Multiple Equilibrium Models to Macroeconomics Policy Conference held at the Bank of England on July 3rd and 4th 2017.

Prof Roger Farmer

Posted: 11 September, 2017 - 13:13 with: Comments

This is my penultimate post featuring research presented at the conference on Applications of Behavioural Economics and Multiple Equilibrium Models to Macroeconomics Policy Conference held at the Bank of England on July 3rd and 4th 2017.

Prof Roger Farmer

Posted: 2 September, 2017 - 21:51 with: Comments

This is week five of my posts featuring research presented at the conference on Applications of Behavioural Economics and Multiple Equilibrium Models to Macroeconomics Policy Conference held at the Bank of England on July 3rd and 4th 2017.

Prof Roger Farmer

Posted: 28 August, 2017 - 00:04 with: Comments

This is week four of my posts featuring research presented at the conference on Applications of Behavioural Economics, and Multiple Equilibrium Models to Macroeconomics Policy Conference held at the Bank of England on July 3rd and 4th 2017.

Prof Roger Farmer

Posted: 21 August, 2017 - 08:45 with: Comments

This is my third memo featuring research presented at the conference on Applications of Behavioural Economics, and Multiple Equilibrium Models to Macroeconomics Policy Conference held at the Bank of England on July 3rd and 4th 2017.

Prof Roger Farmer

Posted: 14 August, 2017 - 08:43 with: Comments

This is the second of my posts on the conference: Applications of Behavioural Economics, and Multiple Equilibrium Models to Macroeconomic Policy, held at the Bank of England on July 3rd and 4th.  I feature two papers written by officials from the Federal Reserve System. 

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