The Web [Axel Leijonhufvud]

​What is your first association when somebody talks to you about the economy?
Axel Leijonhufvud was one of the most creative and perspicacious macroeconomists of the last century. He became famous early in his life for his contention that the Keynesian Economics being taught and understood at that time was a serious misinterpretation of Keynes's ideas. Instead of the emphasis on inflexible wages and prices as being central, Keynes, he argued, was focused on the failure of intertemporal coordination. Taking that challenge into consideration required a different way of looking at the economy and theorizing disequilibrium. As a committed supporter of the history of economic thought, he was singularly aware of the problems of taking a wrong path intellectually--a mistake that could lead to years of misguided work. And indeed, that wrong turn, away from the fertile ground of disequilibrium macroeconomics did occur, as the profession moved away from it to what he may have seen as an academic and theoretical dead end. His latter career was devoted to finding more meaningful and generative foundations for dealing with the deeper issues of macroeconomic and monetary stability. In the last decade of his life he was a founding member of the Institute for New Economic Thinking and a key part of its academic council.
In this animation, taken from his speech at the INET plenary in Berlin in 2012, he describes the process by which macroeconomic instability is generated. We invite you to see it and to explore the many other contributions of this true intellectual giant.
Read his papers and more in our archive of his work:
newth.ink/axel
Professor Leijonhufvud speaking at INET Berlin 2012:
• Axel Leijonhufvud: Deb...
Axel's "Masters Series" interview playlist:
• Axel Leijonhufvud [Mas...
Produced by Matthew Kulvicki & Nick Alpha

[@hg485]

Thank you kindly.

[@m.walther6434]

Statistical mechanics knows the property of the Correlation Length of a system. A short CL means, local perturbations, disturbances, are staying local, returning to equilibrium and don't influence the whole system, they peter out.
When the system becomes critical, local perturbations are amplified and start to travel through the whole system, .
The last global financial meltdown (2007-2009) as an example for a global network breakdown due to lost of trust. Financial institution gave or received loans from other institution, money could circulate freely. When the shit hit the fan, every lender stopped lending and demanded repayment and the flow of money froze (Phase Transition).
The financial system became critical with a large CL, due to the large number of interconnections between institution and asset classes.

[@whom4751]

Well done

[@btsmylife4490]

@n

[@pauldruhg2992]

You can definitely see the lowering of the prices. Not.😂

[@Cdarlosfletch58]

The laws are made by big business ! The laws are broken by big business ! Just look what’s happening in Ohio Palestinian with the chemical train disaster !!

[@miriannaconteuhhffduuchejn7226]

I. B

[@mariabortun471]

​@@miriannaconteuhhffduuchejn7226 tot tt ho t5 ho trovato uno dei hu