Reading - Week 52 (2016)

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A very goood article by John Muellbauer on the shortcomings of  New Keynesian dynamic stochastic general equilibrium (DSGE) models used by central banks to survey general macroeconomic prospects, in which the author reveals the modeler's omission of vital inputs and reliance on unrealistic and execisvely rigid assumptions:

Macroeconomics and Consumption: Why Central Bank Models Failed and How to Repair Them.

A graphic look at the reality of high inflation in Latin America by Martin Feldstein: 

The Destructive Power of Inflation.

A good conspectus and critique of wishful policy thinking on the part of the Europhile think tank of the French government France Stratégie, by Bill Mitchell, who takes a clear and convincing stance against the Euro:

France Stratégie's Three Options for the Eurozone Ignore the Elephant.

Steven Cecchetti and Kermit Schoenholtz offer a neat summary of why they think returning to the Gold Standard is not desirable at all:

Why a Gold Standard Is a Very Bad Idea.

David Glasner reacts to Cecchetti et al with a riposte entitled

Golden Misconceptions

Thought-provoking ideas on the nature of money by the anonymous author of a blog entitled Philosophical Economics:

The Meaning of Money. 

Ulrich Bindseil and Philipp J. König present an incisive, lucid, respectful, yet critical account of Moore's insights into the endogeneity of money, in

Basil J. Moore's Horizontalists and Verticalists: an appraisal 25 years late