career and my thinking have been two, Frank Knight and
Knut Wicksell. Frank Knight was my teacher and my role model and everything else.
Swedish economist
Knut Wicksell's century-old concept of a "natural" interest rate - at which real (inflation-adjusted) GDP growth follows a long-term average while inflation remains stable - makes sense.
Swedish economist
Knut Wicksell's century-old concept of a "natural" interest rate a at which real (inflation-adjusted) GDP growth follows a long-term average while inflation remains stable a makes sense.
This bothered us, because the basic economic theory we were taught - the theory built by Alfred Marshall,
Knut Wicksell, and Robert Solow - said everything was driven by structural forces.
This bothered us because the basic economic theory we were taught - the theory built by Alfred Marshall,
Knut Wicksell, and Robert Solow - said everything was driven by structural forces.
Knut Wicksell (1851-1926)--like Fisher--had broad intellectual interests, reflected both in his university studies and in his writings and speeches.
This is based on the idea, widely attributed to Swedish economist
Knut Wicksell, that keeping inflation close to our objective requires that the real short-term interest rate should track the economy's underlying "natural" real rate of interest (Woodford 2003, Wicksell 1936).
He describes his methodology, then offers a chronologically arranged retrospective survey beginning with Aristotle and ending with Jean Baptiste Say (1767-1832),
Knut Wicksell, and metallism and chartalism.
The other approach, inspired by the work of
Knut Wicksell, treats the state as a process of interaction, with fiscal phenomena emerging from that interaction.
The grounds for the debate were really quite simple--both men had in their respective theories of the cycle drawn upon a framework that had been developed by a Swedish economist named
Knut Wicksell. Wicksell wrote in German.
Why is the idea, common to John Maynard Keynes, Milton Friedman,
Knut Wicksell, Irving Fisher, and Walter Bagehot alike, that governments must intervene strategically in financial markets to stabilize economy-wide spending now a contested one?
In the 1920s, Swedish economist
Knut Wicksell defined it as the interest rate at which, economy-wide, desired investment equals desired savings, implying no upward pressure on consumer prices, resource prices, or wages as aggregate demand outruns supply, and no downward pressure on these prices as supply exceeds demand.