New Keynesian economists have accepted that their HANK model, which models the behaviour of one representative agent, doesn’t explain the outcomes on different income groups. As we know, the latest rate rises are having a more profound impact on income variation. Steve says their models don’t work because they don’t realise the distribution of income. T…
Listen to this episode with a 7-day free trial
Subscribe to Building a New Economics to listen to this post and get 7 days of free access to the full post archives.