Blog Archives

What’s wrong with economics? Part 4: What has to change?

There have been frequent calls for a new approach to economics in the press. For this purpose, George Soros founded the “Institute for New Economic Thinking” (INET). I personally do not see this as a solution. Nobody knows what “new

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Posted in Economics

What’s wrong with economics? Part 3: Economics and its public perception

Economics as a cock fight In August last year, Raghuram Rajan, the current Head of the Indian Central Bank and previous Professor of Finance in Chicago, wrote an article that had attracted considerable attention about the “paranoid style” of economic

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Posted in Economics

What’s wrong with economics? Part 2: The realities of complex societies

Is the economy complex or merely complicated? The methodological approach of mainstream economists largely involves seeing an economy as either in a state of equilibrium or in a state of striving to reach an equilibrium. Economists analyse factors and chains

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Posted in Economics

What’s wrong with economics? Part 1: The disorganisation of economics

These days economists have a bad reputation. And not only because almost all of their forecasts are wrong. They failed to predict both the financial crisis and the Euro crisis; indeed, most of them did not even have a vague

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Posted in Economics

Preventing financial meltdowns

A great video with Tim Harford from the FT, putting financial meltdowns into the broader context of complexity.

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Posted in Economics, Financial Markets

The preposterous deflation scare Part IV – Who should be scared of deflation?

There is no sound empirical evidence and no convincing theoretical justification for why deflation is such a danger to the economy. Although deflation can be the result of an economic crisis, it can also be caused by cost reductions due

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The preposterous deflation scare Part III – The empirical data: When has deflation really been dangerous?

There have been different stages of varying levels of inflation in world economic history, but also long periods of price stability. The present period, which is characterised by relatively moderate and constant inflation rates of about 2% p.a., is relatively

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Posted in Economics
“With a Steady Hand”
Welcome to the weblog of Karl-Heinz Thielmann, fund manager, financial analyst, economist and dedicated long-term investor.

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