CFE Fellow Bob Barbera pointed out to us a blog entry by Brad DeLong with the title, “Why Aren’t Economics Departments Using Their Macroeconomic Slots to Hire People Who Know Walter Bagehot?”. Paul Krugman and Larry Summers are mentioned in the post discussing the important ideas economists seem to have forgotton.
One answer to DeLong’s question is that JHU is hiring macroeconomists who know Bagehot (and Minsky and Kindleberger and …)
The CFE’s founding mission–established well before the crisis–is to bridge the gap between macroeconomics and finance and between rocket science and social science. The very essence of this mission is to bring back into the discussion the rich notions of macro-financial interactions that seemed to have been forgotten in the new millenium.
The required reading spotlight on our website is just getting underway, but the first two entries regard Bagehot’s masterpiece, Lombard Street, and CFE-Fellow Bob Barbera’s Minsky-inspired book, The Cost of Capitalism.
We think that we are very much on the right track and it’s good to know that others feel the same way.