There’s a reason people say “put your money where your mouth is.” Predictions are free, but a friendly wager acts as a tax on the delusional. And there is perhaps no topic of debate where this sort of ...

Learn how the marginal propensity to save (MPS) impacts economic decisions and calculations. Discover its role in Keynesian economics and how to calculate MPS effectively.

There is a small war going on between liberal and conservative economists about whether government stimulus packages increase or do not materially affect basic levels of economic activity. Liberals ...

In a normal economy, 40% of new hires are people who switched right over from another job: Friday at Walmart, Monday at Target. The other 60% come from some mix of the unemployment lines and the ether ...

The global financial crisis has led to a renewed interest in discretionary fiscal stimulus. Advocates of discretionary measures emphasize that government spending can stimulate additional private ...

According to Keynesian economic theory, many recessions have little or nothing to do with underlying structural economic problems. Instead, the theory holds, recessions are the result of a crisis in ...

Get your news from a source that’s not owned and controlled by oligarchs. Sign up for the free Mother Jones Daily. I’m curious about something. It’s far enough above my pay grade that I’m a little ...

En un número reciente del American Economic Review, prominentes economistas presentan su visión sobre qué constituye el núcleo central de la teoria macroeconómica. Entre otros aspectos, coinciden en ...

Bloodletting is the withdrawal of blood from a patient to cure or prevent illness. It was based on an ancient system of medicine in which the proper balance of bodily fluids like blood were considered ...

Explore how the crowding-out and multiplier effects impact government stimulus spending. Learn which theory better stimulates ...

This week “The Economist explains” is given over to economics. For each of six days until Saturday this blog will publish a short explainer on a seminal idea. WHEN Barack Obama sought to boost America ...