What is Wrong with a Zero Interest Rate?

by Herman Daly The stock market took a dip, so the Fed will likely continue to keep the interest rate at zero, in conformity with its goal of supporting asset prices by quantitative easing. What is wrong with a zero interest rate? Doesn’t it boost investment, growth, and employment? There are many things wrong with […]

The Future History of Political Economy – Part 2

Thermodynamics in Economics: Revolutionary portent, future history by Eric Zencey Ecological Economics represents the extension into economics of the thermodynamic revolution of the nineteenth and twentieth centuries. In physics, that revolution dethroned Newton and brought relativity. In biology, it was midwife to the birth of ecology, the study of ecosystems as wholes in which energy networks—food […]

The Future History of Political Economy – Part 1

Economics Ignores Thermodynamics by Eric Zencey Editor’s Note: An earlier version of this essay appeared as a comment in the Great Transition Network Forum, which will appear on the Great Transition Initiative website next week along with a new essay by Herman Daly, “Economics for a Full World.” Ecological Economics and its corollary, Steady State […]

Paul Krugman on Limits to Growth: Beware the Bathwater

Brian Czech responds to Paul Krugman’s shockingly weak column, which argues against the limits to growth with the example of slow steaming.

A Question of Scarcity

On our full-world planet, we face an urgent challenge to find strategic points in decision-making processes to encourage “right-sized” consumption.

The Triumph of Fantasy over Science, Part 2

How to take back economic policy from the damaging fantasies of neoclassical economics.

The Triumph of Fantasy over Science, Part 1

How in the world did fantasy become the basis for economic policy in the real world?

Growth and Free Trade: Brain-Dead Dogmas Still Kicking Hard

Of course, it’s better to be rich than poor, but the conventional approaches for making us rich — GDP growth and free trade — no longer apply.

Neoclassical Economist Recants Key Article of Faith

Eric Zencey explains why GDP is an indicator for amnesiacs.

Economics Unmasked

MIT-PhD-IMF-BMW. Although this career path may benefit specific economists, it fails to serve the common good.