Weekend list #11

To be relevant, economists need to take politics into account

Economists seem to feel that political questions are outside their area of concern. Yet politics helps determine the value of economic policy recommendations.

The Soviet collapse

Yegor Gaidar held various political offices in Russia between 1991-1994. His account is a warning to those who construct policy based on the assumption that oil prices will remain perpetually high.

Breaking with orthodoxy: the politics of economic policy responses to the depression of the 1930s

Under the same systemic shock, the collapse of the international economy in 1929, different countries formulated different policy responses. What differed was the specific balance of forces among local interest groups.

Agent-based models: understanding the economy from the bottom up

This Bank of England article considers the strengths of agent-based modelling, which explains the behaviour of a system by simulating the behaviour of each individual agent in it.

Macroeconomic policy in DSGE and agent-based models redux: new developments and challenges ahead

A critical discussion of the theoretical, empirical and political economy pitfalls of the DSGE-based approach to policy analysis.