Recent posts

6-Potentials and Possibilities

16 January, 2020

Once we realize that money is not a constraint, the possibilities for utilizing idle resources to increase production are endless. There are a large number of Self-Financing Mega-Projects which we could create using the vast pools of idle unskilled labor at our disposal. Remember that Dubai was built by our laborers – surely we can … Continue reading »

5-Sectorally Balanced Monetary Expansion

15 January, 2020

This is the fifth in a series of posts which expand upon a talk delivered on Modern Monetary Theory at the State Bank of Pakistan on 7th Jan 2020. The previous post (4-Job Guarantee Program) explained some aspects relevant to Pakistan. This portion deals with how we can avoid inflationary consequences of the money creation … Continue reading »

4-Job Guarantee Programs

14 January, 2020

Continues from previous post on 3-Three Way Partnership. While the three-way partnership (discussed in previous post) is an unconventional program, designed for the unique circumstances currently prevailing in Pakistan, the JOB GUARANTEE PROGRAM is one of the central recommendations which emerges out of macroeconomic ideas generated by Modern Monetary Theory. The basic idea is that … Continue reading »

3-Three Way Partnership

13 January, 2020

Previous posts in this sequence about “Policy Implications of MMT for Pakistan” are 1-MMT For Pakistan and 2-Two Sources of Monetary Injections. This post notes that standard approaches to MMT, where the government creates money to finance public projects, are not feasible in current Pakistani context. Instead, a three-way partnership is required to allow private sector creation … Continue reading »

2-Two Sources of Monetary Injections

12 January, 2020

As a brief recap of the previous post, Part 1 of a talk on Policy Implications of MMT for Pakistan, we note the key accounting identity that Business Profits + Household Savings = Government Injections (Deficits) + Foreign Injections. If firms are motivated by profits, and households seek to save, the only way for both … Continue reading »

1-MMT For Pakistan

11 January, 2020

Introductory Remarks: This post is 1st part of my second talk at SBP; (see MMT at SBP for first talk) . I taught a two semester course on this topic, and very little of the depth and complexity can be covered in the allotted time of half an hour. Accordingly, in this talk I cut … Continue reading »

Transformation of Economic Theory

1 November, 2019

This post is a continuation of our series on the history of Central Banking. The previous post was:  Monetary Policy from 1914 to 1980. Before going on to discuss the transition from Keynesian goals to inflation targeting, we need to step back and provide some background information on the ideological battles which were crucial to this … Continue reading »

Obstacles to Democracy

29 October, 2019

This article was published in The Express Tribune, February 3rd,  2015. It explains that, contrary to popular opinion, democracy DOES NOT mean rule by political parties. Today, we see genuine efforts being made by Imran Khan to help the people, but the general mindset among the ruling classes opposes these efforts. The Colonial Mindset makes the … Continue reading »

Colonial Mindset and Economic Policy

26 October, 2019

Re-posted from Islamic WorldView Blog: Impact of Colonial Heritage on Economic Policy in Pakistan.  [] In this post, we provide a video-lecture and a summary of comments by Guest Panelist: Dr Asad Zaman on  a Research Presentation by Syndicate-1: “Task Force on Governance”  at National Institute of Management on Thursday, 23rd May, 2019 from 12:00-13:00 … Continue reading »

Improving Planning and Policy in Pakistan

24 October, 2019

22 Feb  2017: Seminar at MoPD&R on how we can improve planning and policy making in context of Health & Nutrition.  The seminar was based on the Outcomes and Conclusions of the Brainstorming Session on Policy Priorities for Health & Nutrition held at PIDE Friday 17th Feb 2017. An Executive Summary and outline of points … Continue reading »

The Great Transformation of Economic Theory

21 October, 2019

Note: This is part of a sequence of posts on Central Banking, which is essential to understanding monetary policy today. Most posts are from the WEA Pedagogy Blog, and are reproduced here. I will provide an organized sequence of posts at some later date, once the sequence is complete. This post provides a broad perspective … Continue reading »

Summary of Karl Polanyi’s Great Transformation

18 October, 2019

This post, by far the most popular I have ever written, attracts about 1000 hits per month since it was first posted about six years ago in 2013. It summarize Polanyi’s book, which was among the top ten most influential books of the twentieth century. It provides deep insights into the origins of capitalism and … Continue reading »

Effects of Wrong Exchange Rates

16 October, 2019

Preliminary Remarks: This article was published as “Burning Billions” in Dawn, on 18th Jan 2019.  At the time it was written, there was a huge debate about the falling rupee, and most of the public supported the policies of Finance Minister to prop-up the Rupee at an artificially high rate. As has now become apparent to most … Continue reading »

The Conflict between Microeconomics and Reality

14 October, 2019

In my paper entitled “Empirical Evidence Against Neoclassical Utility Theory: A Survey of the Literature,” I have argued that neoclassical utility theory acts as a blindfold, which prevents economists from understanding simple realities of human behavior. The paper provides many examples of this phenomenon, which I will illustrate briefly with one simple example in this … Continue reading »

Economics for the 21st Century

13 October, 2019

Published on 22 Jan 2018 in Newsline Magazine as “ Cradle of A New Economics“.  This is a 1600 word summary of The Presidential Address at the 33rd Annual Conference of PSDE, on 12 Dec 2017 in Islamabad. Also, full 35m Video Lecture:  Failure of Economics: After the Global Financial Crisis (GFC) of 2007, the failure of economic theory … Continue reading »

Michel Foucault: Power/Knowledge

11 October, 2019

We cannot understand the world around us without a sophisticated understanding of the complex but intimate relationship between knowledge and power. One of the most influential philosophers of the twentieth century, Michel Foucault, crafted a radically different understanding of this relationship. Instead of seeing power in brute force, he saw power as being the ability … Continue reading »

Monetary Policy from 1914 to 1980s

8 October, 2019

This series of posts is based on a single lecture (Lecture 13 of Advanced Macro II) exploring the evolving functions of Central Banks through time. It goes through a vast amount of material in a very short time, and hence is a very sketchy treatment. This is the 3rd post,  which deals with the period … Continue reading »

Coarse and Fine Histograms

5 October, 2019

Our universe has amazing structure, which varies tremendously by the level at which it is examined. At the macroscopic level the spiraling galaxies race outwards. Within a galaxy, starfish arms dance around the center. Sharpening the focus, planets circle our sun in regular orbits. At our human scale, the flora, fauna, forests, oceans, mountains, and … Continue reading »

The Greatest Teacher

3 October, 2019

There is no doubt that our Prophet Mohammad SAW was the greatest teacher of all time. At the very beginning of Wahy, in the Cave of Hira, Allah T’aala introduced Himself as the one who gives knowledge to man which man did not have. In other words, Allah T’aala introduced Himself as a TEACHER. This … Continue reading »

Histograms: Pictures of Distributions

1 October, 2019

Our goal in this first sequence of posts on “Real Statistics”, is to understand the concept of a “distribution”. There are four different, closely related concepts. We are in process of discussing the first concept, which I call a “real distribution”. The first post “Understanding Statistical Distributions” explains this in detail. As a brief summary, … Continue reading »

Real Statistics: Introduction

30 September, 2019

After the dramatic failure of economists to predict the Global Financial Crisis, Krugman said that “the profession as a whole went astray, because they mistook the beauty of mathematics for truth” (see Quotes Critical of Economics). Many people have independently arrived at similar conclusions – current educational methods train students using mathematical theories not connected … Continue reading »

Understanding Statistical Distributions 1

29 September, 2019

In his Guide to Econometrics, Peter Kennedy writes that, even though the concept of distribution of random variables is the most basic and the most important concept at the foundation of all of statistics and econometrics, very few students actually understand what this means. My own teaching experience with students who have taken statistics and … Continue reading »

Guide to Thesis Writing

28 September, 2019

I have many lectures about advice to students in process of writing M.Phil. or Ph.D. thesis proposals, and/or the actual thesis. The most comprehensive advice is contained in the IIIE Student Guide to development of M.Phil. Research proposal. This entire website is a step-by-step guide about how to write an M.Phil. Thesis proposal. Other than … Continue reading »

Re-Launch and Re-Activation

26 September, 2019

Dear Pakistani Economists – friends, colleagues, students — This website is a branch of the World Economic Association, which strongly rejects conventional economics (as fairy tale economics) and works on creating Real World Economics. There are MANY, MANY elements which are extremely different when we want to do real world economics, as opposed to theoretical … Continue reading »

Radical Paradigm Shift

21 July, 2018

An excellent article written by Dr. Asad Zaman While logical positivism is rarely discussed in classes, it is deeply embedded in the foundations of economics and econometrics. Even though it is a failed philosophy, the mistake is subtle and difficult to detect. Linked post below explains my own experiences with absorbing and then unlearning this … Continue reading »

National Poverty Report 2015-16

20 July, 2018

Since 2001, the Planning Commission of Pakistan has been estimating the national poverty line. From 1990 to 2011-12 nutritional inadequacy is used to measure poverty line. However, keeping in view of recent dynamics, the poverty line is now calculated by using the cost of basic needs. The present report presents national poverty number, along with disaggregation at rural-urban level. … Continue reading »

The Second Crisis of Knowledge in the Islamic Civilization

26 November, 2017

I am sharing a very interesting and mind blowing post written by Prof. Dr. Asad Zaman. in his recent post” The Second Crisis of Knowledge in the Islamic Civilization” he argued that “This crisis is all encompassing, and requires a massive and multi-dimensional effort on many different fronts to counter-act and cure. Some aspects are … Continue reading »

Freeing Our Minds from Colonial Chains….

21 November, 2017

Recently Dr. Asad gave a talk at IMS Peshawar on the need to launch a revolution in economics. He argued that the conventional theory is fundamentally flawed. This wrong theory is taught because it is a weapon in the war of the rich against that poor. His 90min talk, entitled: Freeing Our Minds from Colonial Chains, … Continue reading »

Recent post of Dr. Asad Zaman on WEA Pedagogy Blog

14 November, 2017

The Shifting Battleground

معاشی انسان اور کراچی

1 March, 2014

تحریر: عتیق الرحمن مروجہ اقتصادیات ایک انسان کو جس طرح کا تصور کرتی ہے یا دیکھنا چاہتی ہے، اس تصور کو معاشی انسان (Economic Man) کہا جاتا ہے۔ معاشی انسان میں درجہ ذیل خصوصیات کی موجودگی ضروری ہے: ۱۔ مذہب اور مذہبی ذمہ داریوں کو ذاتی زندگی تک محدود سمجھنا اور سماجی ومعاشی ذمہ داریوں … Continue reading »

Good Intentions ,Poor and Cities

15 February, 2014

Zahid Asghar Sympathies for poor are very common and there is no lack of good ideas. Good intentions for helping the poor may be fine but helping the poor in real terms is a different story. Thousand miles journey begins with a single step but it should be in the right direction. Do we really … Continue reading »

PM Youth Loan Scheme: Honest Opinion

6 January, 2014

I have received ” Honest Opinion” about PM Youth Loan Scheme which i am posting here…  your comments are welcome…  The purpose is not to criticize on the policies and standard operating procedures designed by the Federal policy makers,  but I am  here to present some honest observations and suggestions for better improvements regarding the counseling, execution … Continue reading »

Modern Structure of Knowledge and Criticism of Islamic Banking

4 January, 2014

By Omar Javaid Islamic banking is growing by leaps and bounds in the world, many sees this as a successful utilization of Islamic principles to solve worldly problems whereas others considers it as a mistake of putting a label of ‘Islamic’ on various things which are prohibited or disliked by Islam. These two groups often … Continue reading »

Exchange Rate, Debt Burden and Balance of Trade

3 January, 2014

By: Atiq-ur-Rehman Consider a realistic example; the current total external debt of Pakistan is about US$61 billion. At the exchange rate of 106, this amount is equivalent to PKR 6466 billion. Suppose the value of dollar goes up by one in exchange of Pakistani rupee, the debt would be come PKR 6527 billion with an … Continue reading »

Remittances in Pakistan; what is happening and what can be done

2 January, 2014

By: Atiq-ur-Rehman For 2013-14, the total budget of federal government of Pakistan was about 34 billion US$. Out of this budget, about 4.7 billion $ is the share of debt servicing and about 12 billion US$ is the share of provincial governments. Therefore about 17 billion $ is available to the federal government for its … Continue reading »

Cities and Sustainable Development

1 January, 2014

Cities Development: A win-win proposition Zahid Asghar[1] 21st is not only a century of cities but also century of dense cities. Cities have played remarkable role in rapid economic development both in developed countries and developing countries like China, India, Vietnam and Brazil. Pakistan can also make its cities as engine of growth by following … Continue reading »


Cities and sustainability »

Comments (1 response)

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