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On September 04 2010 14:28 Milkis wrote:Show nested quote +Why do people still thing modern interpretations of Keynesian economics work? Everytime there's a depression and people find out we did something wrong in the economy people get depressed and disillusioned and start bringing Keynes up as a glimmer of hope. Keynes will never die. he did have a lot of cool ideas though, and tbh the idea he was basing his theory off from will always come back and will come back stronger in the future as we understand more and more.
As I am bored I decided to comment on this 
In macroeconomics there are two schools.
1. New Keynesians
2. Neoclassical
Both are rather prominent but these days actually New Keynesian school seems stronger. What is different between this modern Keynesian Theory and the previous one is the focus on micro-foundations. Keynesian Economics as used in 50s and 60s of last century was looking only into aggregates and did not model at all individuals. After Lucas's and Friedman's critique as well as the 70s stagflation Economists came to the conclusion that one can't understand aggregate economy without carefully modelling individual choices. This killed Keynesian economics at that time but in 90s it came back. Only this time it was carefully modelled using micro-foundations.
The starting point of the analysis is the same as in the neoclassical case. There is an individual who chooses how much to consume, work and save. On the other hand, there are firms and each of them chooses how much to hire of labor, how much of capital to rent and how much to produce. At this point both school take different approaches. In the New Keynesian models there will be different types of frictions, labour frictions, pricing frictions or wage-setting frictions all of which are absent in the neoclassical analysis.
To be honest, as I see it, only uninformed people keep bringing Keynes during bad times. In academia his ideas are alive. The thing with Keynes and his ideas is that he never formulated them formally. While most of them sound plausible it is hard to model them. They are also opened to new interpretations.
Finally, all that current recession really taught Economists in academia is the role of financial friction and information in macroeconomics. Before these two were neglected. Obviously, they were explored before (famous model by Kyiotaki and Moore 1997 or another famous model by Bernanke Gertler Gilchrist 1998 just to name two most famous) but most of Economist thought that these are not crucial to get a big picture of the economy. For the layman it might sound stupid now but if you actually looked at the models without those extra features they were already super complicated and rather intractable. And what's the value of the answer given to you by a computer when you don't understand why this is the answer or even if it is correct. Moreover, these models were missing other features deemed realistic and there was fierce battle which one should be next one to be incorporated into the mainstream model.
Now, it seems clear that financial frictions shouldn't be neglected and one can only wait for the huge amount of models constructed that will incorporate them. But my bet it is that most of them will be in New Keynesian style.
Anyway, I guess I killed enough time writing this so I can go to bed 
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FREEAGLELAND26780 Posts
Oh shit the first thing I noticed was Megalisk getting permabanned.
Regardless Milkis spammer.
+ Show Spoiler +ASL? 
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On September 04 2010 14:51 jalstar wrote:
Does abstract algebra have any use outside of mathematics? Econ and finance graduate programs usually recommend linear algebra and sometimes real analysis, but I've never seen abstract algebra as a prereq.
Sorry Milkis for hijacking your thread a bit...
I have never seen abstract algebra being used anywhere in Economics. And I am doing mostly theory these days. Some concepts from Algebra are used when you learn other useful maths for Economics (like Functional Analysis) but you can easily live without taking a course in it.
On the other hand Real Analysis is at the heart of Economics. As Robert Lucas once said:
"Economic Theory IS Mathematical Analysis." In any Ph.D program you will really need analysis. And if you want to do theory then you should become very fluent in it.
As a rule of thumb for Economics, the more Analysis you take (and maths in general) the better. Obviously, given limited time you should only take the courses which are the most useful and Introductory Real Analysis is the most useful.
To be honest, I found that knowledge of Real Analysis helped me the most during my first years of ph.d.
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5003 Posts
Is there any chance in your opinion that the Blizzard/Kespa drama will be resolved in a way that leaves the Brood War scene intact?
It's already not intact. The drama has, already killed most of the hype. Unless Blizzard KeSPA works together, BW scene will be on a steady decline.... chances of BW being saved? Very, Very, little.
How do you feel about the use of economic thinking as an interdisciplinary approach to the rest of the social sciences? (economic imperialism as some of my non-econ social science friends would call it)
Use it only when you can bring some new insight to those social sciences, or if you can bring in anything cool to Economics. Forcing it down when there's nothing there is fruitless, since Economic analysis is a tool. Just make sure your tool can actually do something!
Do you find yourself looking at everything else in the world through economics-colored lenses since you've been taking econ?
Quite a bit of things, usually when I sit down and think about things. However, not as much as I would like to X(
What economics blogs do you read?
Mankiw, VoxEU, EconLog, The Economist Free Exchange, Real Time Economics, Becker-Posner
Finally, more accurate picture of the causes of the Great Depression: Keynes or Friedman?
I haven't studied/read about the Great Depressions or the full analysis of Keynes and Friedman to properly judge. From just the summaries which I'm familiar with, I would probably say it's a mix of both (biggest reason I think this is "okay so we didn't do that this time around but we still got the great recession") I'm slowly trudging through the General theory atm though!
To be honest, as I see it, only uninformed people keep bringing Keynes during bad times. In academia his ideas are alive. The thing with Keynes and his ideas is that he never formulated them formally. While most of them sound plausible it is hard to model them. They are also opened to new interpretations.
You have to admit there was a huge surge of Keynesian thought during this crisis. I think there's a specific reason why there is such a surge, and that's pretty much what I'm concentrating on my current idea for the thesis really :3
Also I'm familiar with macroeconomic schools of thought -- I'm not quite sure why you brought it up or why you wrote your post =/
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How well can you tell the difference between an honest and a fake smile?
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Do you enjoy all this attention?
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On September 04 2010 15:16 Milkis wrote:Show nested quote +Is there any chance in your opinion that the Blizzard/Kespa drama will be resolved in a way that leaves the Brood War scene intact? It's already not intact. The drama has, already killed most of the hype. Unless Blizzard KeSPA works together, BW scene will be on a steady decline.... chances of BW being saved? Very, Very, little. Show nested quote +How do you feel about the use of economic thinking as an interdisciplinary approach to the rest of the social sciences? (economic imperialism as some of my non-econ social science friends would call it) Use it only when you can bring some new insight to those social sciences, or if you can bring in anything cool to Economics. Forcing it down when there's nothing there is fruitless, since Economic analysis is a tool. Just make sure your tool can actually do something! Show nested quote +Do you find yourself looking at everything else in the world through economics-colored lenses since you've been taking econ? Quite a bit of things, usually when I sit down and think about things. However, not as much as I would like to X( Mankiw, VoxEU, EconLog, The Economist Free Exchange, Real Time Economics, Becker-Posner Show nested quote +Finally, more accurate picture of the causes of the Great Depression: Keynes or Friedman? I haven't studied/read about the Great Depressions or the full analysis of Keynes and Friedman to properly judge. From just the summaries which I'm familiar with, I would probably say it's a mix of both (biggest reason I think this is "okay so we didn't do that this time around but we still got the great recession") I'm slowly trudging through the General theory atm though! Show nested quote +To be honest, as I see it, only uninformed people keep bringing Keynes during bad times. In academia his ideas are alive. The thing with Keynes and his ideas is that he never formulated them formally. While most of them sound plausible it is hard to model them. They are also opened to new interpretations. You have to admit there was a huge surge of Keynesian thought during this crisis. I think there's a specific reason why there is such a surge, and that's pretty much what I'm concentrating on my current idea for the thesis really :3 Also I'm familiar with macroeconomic schools of thought -- I'm not quite sure why you brought it up or why you wrote your post =/
Wrote my post to kill some time. Nothing deep there
And my main field is macroeconomics so I like to talk/write about it
A question from me:
Robert Lucas or John Maynard Keynes?
Milton Friedman or Edmund S. Phelps?
Macroeconomics or Microeconomics?
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5003 Posts
How well can you tell the difference between an honest and a fake smile?
I actually assume most smiles are not genuine (ie, used because of social conventions or to prevent social awkwardness). I think smiles are the best masks that people use to hide their thoughts.
Genuine smiles only come after certain events. Usually, you can tell at that point.
can I be your friend?
Maybe after I get to know you better!
Coffee or Tea?
Tea, by a considerable margin. I drink both frequently though.
Do you enjoy all this attention?
Usually whenever I get people to ask me questions I appreciate the questions that make me reflect on myself and get me to think. Infer from that what you want I guess.
Wrote my post to kill some time. Nothing deep there
And my main field is macroeconomics so I like to talk/write about it
Ah, Okay :3 I like talking about certain parts about macro but eh. Maybe I"ll talk to you to get a second opinion about my thesis idea :3
Robert Lucas or John Maynard Keynes?
Milton Friedman or Edmund S. Phelps?
Macroeconomics or Microeconomics?
Keynes. They're both revolutionaries that changed the field of macro, but I think Keynes was the one "started" the question that we're still trying to answer today, and I think in the future, we'll be going to a more application based Econ than a theory based econ.
You divided macro to neoclassical and new keynesian -- i choose to divide it into application and theoretical. Application based econ, which I consider Keynesian to be part of, aims to apply what we know to steer the economy in a certain direction. Theoretical is where I put the neoclassical school, since it argues that "you can't steer it cause you don't understand the full consequences" yet. I think Keynes was the one who literally started the idea of actually applying theories in reality to fix problems and try to steer the economy.
Friedman. I don't think I need to justify myself here ;p
Microeconomics. Macro is just applied Micro (hi5 lucas). Micro is a lot more interesting since you can apply it to a lot more things and create and have actual testable theories (since most of the time it doesnt have to deal with the bs political systems). I also like the topic Micro has been going on nowadays which is revisiting some of the assumptions and trying to build a better utility theory. It's really interesting although I think a lot of people have incorrect perceptions of price theory/utility theory and math based econ in general T_T
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If you are an economics major, my question to you is what field you plan on going in.
I need ideas :[.
Also: how do you feel about megalisk's ban?
Also: Is it just me, or is irc getting even worse?
Also: isn't illinois a great state :D? <3 blago
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Let's say there was a magic genie. This genie, however, wasn't like any normal genie. He had the power to make women fall in love under his control. You could potentially sleep with whoever you wanted, whenever you want, for however long. The only other power this genie had other than this is revealing who has stds. He can also make pregnancy impossible as well.
There is one catch however. The genie will call you up 3 times in your lifetime, anytime he wants out of the blue, and you must perform a favor for this genie. He requests you give him one hand job and then he gives you a hand job in return as well. You both must climax. The genie vaguely resembles the man in the photo below.
(possibly slightly NSFW)
+ Show Spoiler +
Would you do it?
PS: The genie has very rough hands with multiple warts.
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5003 Posts
If you are an economics major, my question to you is what field you plan on going in.
I need ideas :[.
Industrial Organization and Human Capital probably
Also: how do you feel about megalisk's ban?
 but he probably had it coming T_T
Also: Is it just me, or is irc getting even worse?
Wouldn't know, I don't think i've been in #tl for a while....
Also: isn't illinois a great state :D? <3 blago
I still think Minnesota is the best state I've lived in lol
Let's say there was a magic genie. This genie, however, wasn't like any normal genie. He had the power to make women fall in love under his control. You could potentially sleep with whoever you wanted, whenever you want, for however long. The only other power this genie had other than this is revealing who has stds. He can also make pregnancy impossible as well.
There is one catch however. The genie will call you up 3 times in your lifetime, anytime he wants out of the blue, and you must perform a favor for this genie. He requests you give him one hand job and then he gives you a hand job in return as well. You both must climax. The genie vaguely resembles the man in the photo below.
(possibly slightly NSFW)
+ Show Spoiler +
Would you do it?
PS: The genie has very rough hands with multiple warts.
Uh, no.
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I think this had been asked, but I'm too lazy and tired to find it, so: how old are you and what university/school do you go to? ;X
Say you're driving along in your car which can hold only two people at a time, it's pouring rain outside, and you happen to come across a bus stop where you not only see your best friend in the whole world, standing there (whom you haven't met in AGES), but also the man/woman of your dreams (you know this instinctively!), and an elderly lady who has just collapsed and is in need of dire medical attention.
What do you do?
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i really want to ask this, what does kimchi taste like? can you give me descriptions based on it being sweet, sour, salty bitter and spicy? im very curious on that dish cause i havent tasted it yet and i want to taste it yet i cant buy it here.
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Wow, this blog is turning out really decent. Kind of cool to get to know a fellow TL member who's similar to me in many ways!
+ Show Spoiler +Korean-born, fluent English speaker, university student, love watching SCBW but kinda bad at playing, loves 깐풍기 oh yeahhh
BUT
Let's see...
- fav Kpop girl group?
- fav Kpop boy group?
- fav Korean variety/reality show? (ex: infinity challenge, 1박2일, we got married, etc.)
Actually, I'm going to go ahead and assume you love kpop. so-
- fav SNSD member? you can list them in descending order if you want lol
- MIN OR SUZY (Miss A)
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United States22883 Posts
On September 04 2010 15:05 Lebesgue wrote:Show nested quote +On September 04 2010 14:28 Milkis wrote:Why do people still thing modern interpretations of Keynesian economics work? Everytime there's a depression and people find out we did something wrong in the economy people get depressed and disillusioned and start bringing Keynes up as a glimmer of hope. Keynes will never die. he did have a lot of cool ideas though, and tbh the idea he was basing his theory off from will always come back and will come back stronger in the future as we understand more and more. As I am bored I decided to comment on this In macroeconomics there are two schools. 1. New Keynesians 2. Neoclassical
WAT?? WAT ABOUT AUSTRIAN SCHooLS?!!
RON PAUL 2204
+ Show Spoiler +
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mrmin123
Korea (South)2971 Posts
On September 04 2010 12:32 Milkis wrote:The dance that roffles did not do yet > But uh, I don't remember being impressed by a lot of the dances by kpop groups and that's the only ones I remember atm. If i had to pick ridiculous maybe Yoo Seung Joon dancing or something loooool
The answer was 탈춤.
♥
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Wanna play BW sometimes? I'm really bad too.
What's your favorite fast food joint?
What's your opinion on the 2010 Congressional elections?
How long do you think this recession will last?
I've heard recently about the idea of a "risk" tax; what is your opinion about that? Do you believe we should have a market to decide the value of such taxes? (Via shares and such) Do you believe the gov't should try to find the value of such a tax through applied economic data? Or do you believe it is unnecessary and I'm just insane?
What TV shows do you watch? Favorite one?
Do you play SC2?
Do you plan to ever get a Ph. D in economics?
What's the best moment of your life? Why?
Do you have an accent when speaking English?
Do you have long hair or short? :D
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5003 Posts
I think this had been asked, but I'm too lazy and tired to find it, so: how old are you and what university/school do you go to? ;X
I'm 22, and I go to the University of Chicago
Say you're driving along in your car which can hold only two people at a time, it's pouring rain outside, and you happen to come across a bus stop where you not only see your best friend in the whole world, standing there (whom you haven't met in AGES), but also the man/woman of your dreams (you know this instinctively!), and an elderly lady who has just collapsed and is in need of dire medical attention.
What do you do?
Let's put it this way -- if they haven't called an ambulance already (ie, apathy), then he wouldn't be my best friend and I would not care for the "woman of my dreams" since I'm not interested in people like that.
i really want to ask this, what does kimchi taste like? can you give me descriptions based on it being sweet, sour, salty bitter and spicy? im very curious on that dish cause i havent tasted it yet and i want to taste it yet i cant buy it here.
Sour and Spicy. How sour is it depends on how long it's been fermented. Think of fermented/pickled foods, and you should a good idea what kind of sourness is in there.
- fav Kpop girl group?
- fav Kpop boy group?
- fav Korean variety/reality show? (ex: infinity challenge, 1박2일, we got married, etc.)
Actually, I'm going to go ahead and assume you love kpop. so-
- fav SNSD member? you can list them in descending order if you want lol
- MIN OR SUZY (Miss A)
I don't think I have a kpop girl/boy group.... maybe Big Mama if they count since they can actually sing ^^;; Boy groups? Uh, no. they scare me.
Korean variety show? I like 무한도전 but it's very hit or miss since sometimes it's boring and sometimes it's amazing. Other than that, I'm not a huge fan of variety show nowadays, especially since well, they suck now ;p
I don't have a favorite SNSD member or Miss A member, most korean girl group members are so plastic that they look the same and act the same
The answer was 탈춤.
♥
탈춤 is a lifestyle, not a dance. How dare you.
Wanna play BW sometimes? I'm really bad too.
Sure, Just ping me on IRC or PM on forums.
What's your favorite fast food joint?
I wouldn't say I have one... but I do avoid Burger King for the most part.
What's your opinion on the 2010 Congressional elections?
Politics zzzzzzzzzzzzzzzzzzzzz
How long do you think this recession will last?
Technically? It's over. If you mean "back to how it was in 2006"? I would say it'd take a long time for us to go back to a time period like that.
I've heard recently about the idea of a "risk" tax; what is your opinion about that? Do you believe we should have a market to decide the value of such taxes? (Via shares and such) Do you believe the gov't should try to find the value of such a tax through applied economic data? Or do you believe it is
If highly paid wall street people who makes billions of dollars just by quantifying risks and dealing with it can't deal with risk properly then there's zero chance the government could ever do anything like that, period. If you're gonna have a market to decide the value of a tax, then why would you have a tax at all? The government is nice and all but it's not gonna outdo a highly competitive and incentive filled industry such as finance.
What TV shows do you watch? Favorite one?
무한도전 on saturdays, 1박2일, 영웅호걸, Running Man on Sundays, 놀러와 on Mondays, 황금어장 on Thursday, 스펀지 on Fridays. They're all Korean shows hahaha. If i had to pick a favorite it'd be 무한도전.
Do you play SC2?
Nope! Maybe now that it's 40 dollars i'll consider buying it but probably not for a long time.
Do you plan to ever get a Ph. D in economics?
In the eventual long run, yes. I plan on teaching economics in the long run.
What's the best moment of your life? Why?
I don't think I can think of a single best moment -- although one of the time period when I was happiest was during my trip in China and we were in Beijing back in 2008. I was just really happy the entire time there, I'm not even sure why, haha
Do you have an accent when speaking English?
I can't pronounce anything with "th" in it. ^^
Do you have long hair or short? :D
Short atm. I do grow out my hair, but not to anything people will consider long. Long for guys standards probably ;p
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EPT![[image loading]](http://www.viceland.com/blogs/en/files/2010/05/weird-guy-with-guns.jpg)
