INET grants for New Schoolers

[Cross posted from the New School Economic ReviewOriginal here]

Rejection is a standard – if frustrating – part of academic life, but with INETs (Institute for New Economic Thinking) Spring 2011 grant money just being announced there is much to celebrate from a New School side of things. From 400 submissions and a selected 23 grants, the New Shool economics faculty picked up one grant and the alums got another. Not too shabby for a global competition!

Prof. Anwar Shaikh’s proposed book on Turbulent Dynamics and Hidden Patterns wants to look at the world from a perspective of ‘magnificent dynamics’… I have to be honest and say that I am not entirely sure what that means, but a quick browse revealed this review article which helps. I hope we won’t lose Anwar for too long as he attempts the full manuscript, for which an outline is provided:

The book’s aim is to demonstrate that a revived form of the “magnificent dynamics” of the classical economists can explain the actual patterns of developed economies involving relative industrial prices, stock prices and interest rates, exchange rates, growth, cycles and inflation. The book develops a classical theoretical approach to these and other fundamental economic issues which it then contrasts to the corresponding theoretical arguments in the neoclassical and Keynesian traditions. It also confronts all theories with the relevant empirical evidence. It is my hope that this will encourage others to analyze the “two-sidedness” of markets: strong patterns achieved through turbulent processes.

Also in the list is one of our recent alumni Ph.D. Students, Stephen Kinsella currently at Limerick University in Ireland where he is collecting a lot of (well deserved) accolades. He wants to build a stock-flow consistent model of Ireland. It looks like an exciting and ambitious project, which I suspect follows on from other work in this area which Steve has been doing and is forthcoming in EEJ among other places (see the stock-flow-consistent model papers here).

No model helped predict or understand why Ireland’s economy has collapsed so spectacularly since 2007. This is because the real and financial sides of the economy aren’t modeled using current tools. Using INET funds, we will build a stock flow consistent model for Ireland to solve this practical problem, as well as a theoretical problem in the estimation of large stock flow consistent models highlighted in the literature. The project is important because previous modeling methods have largely failed, and because small open economies in an era of globalization all over the world face the same challenges as Ireland.

All in all good news, and I hope that we can continue this kind of success going forward. I wonder if any of the grad students submitted a proposal or worked with the faculty on one? It’s good experience and a great opportunity to get a yes.


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