Saturday, September 24, 2016

Are these doomed ?? Marc Lavoie ............(Godley acolyte )

"the rational expectation hypothesis,

 the strong or semi-strong version of the efficient market hypothesis,

 the unbiased efficiency hypothesis in international finance, 

the assumption of perfect asset substitutability,

 the NAIRU, as a unique (or even time-varying) attractor of the actual rate of unemployment,

 Barro’s Ricardian equivalence theorem, 

The idea of expansionary fiscal contractions based on the confidence fairy."

 "The Global Financial Crisis has completely undermined those hypotheses or assumptions, "