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on History and Philosophy of Economics |
| By: | L. Randall Wray |
| Abstract: | This paper examines heterodox theories of the determinants of the value of money. Orthodox approaches that tie money's value to relative scarcity of money or to the price level are rejected as inconsistent with the monetary theory of production embraced by heterodox traditions linked to Marx, Veblen, and Keynes. This paper examines and integrates (1) recent contributions by David Graeber and Duncan Foley that reinterpret Marx's labor theory of value, (2) the interpretation of Keynes's liquidity preference theory as a theory of asset pricing that began with Sraffa and was further developed by Minsky and Kregel, and (3) Modern Money Theory's approach to sovereign currency. As Heilbroner argued, money is central to the internal logic of the capitalist system, and is what makes capitalism truly different from other social organizations. Our theory of value informs our beliefs about how the deep structure of the economic system generates a system of prices denominated in the money of account. |
| Keywords: | Labor theory of value; Modern Money Theory; Liquidity Preference; Monetary Theory of Production; Marx; Keynes; Minsky; Graeber; Foley; Sraffa; Heilbroner |
| JEL: | B14 B24 B25 B51 B52 E11 E12 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1062 |
| By: | Eric Tymoigne |
| Abstract: | A monetary approach that combines Chartalism, Nominalism, and Command origins of monetary systems is often deemed to have emerged only recently, while the Aristotelian approach (Commodity, Metallism, and Market origins of monetary systems) is the only one that existed until the end of the eighteenth/early-nineteenth century. In the major studies of the history of monetary thought, the Chartalism-Nominalism-Command approach is mostly left unmentioned, or at best reduced to an incoherent banality. The paper shows that this approach has a long and rich intellectual history among European monetary thinkers. In Europe, Plato was its first exponent, albeit in a very rudimentary way, and so one may call it the "Platonic approach." It is developed by Roman legists (such as Javolenus, Paulus, and Ulpian) and Medieval legists (such as Du Moulin, Hotman, and Butigella) who note that coins are similar to securities and that debts are serviced when nominal sums are paid rather than specific coins tendered. During the Renaissance and early modern period, a series of scholars and financial practitioners (such as Law, Dutot, Thomas Smith, and James Taylor) emphasize the financial logic behind monetary mechanics and the similarity of coins and notes. In the twentieth century, authors such as Innes, Knapp, Keynes, and Commons build onto the groundwork provided by these past scholars. In China, the Chartalism-Nominalism-Command approach develops independently and dominates from the beginning under Confucian and Legist thoughts. They emphasize the statecraft origins of monetary systems, the role of tax redemption, and the irrelevance of the material used to make monetary instruments. Clay, lead, paper, iron, copper, and tin are normal and convenient means to make monetary instruments, they are not special/emergency materials. The essence of a monetary instrument is not defined by its materiality but rather by its chartality, that is, by the promise it embeds. The Platonic approach rejects the categories and conceptualizations used by the Aristotelian approach and develops new ones, which leads to a different set of inquiries and understanding of monetary phenomena, problems, and history. |
| Keywords: | History of monetary thoughts; monetary theory; Chartalism; Nominalism; asset pricing; redemption |
| JEL: | B10 B11 B20 B26 E42 E62 G12 H30 K15 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1058 |
| By: | Wakamatsu, Naoyuki |
| Abstract: | The paper argues that Senior was still under the influence of Ricardo’s economics from the point of view of economic growth. Senior generally emphasised a sustainable growth of economy brought by the prudential check to population and the technological progress in agriculture, but it depended on wise institutions. However, on the other hand, he was familiar enough with Ricardian growth which enabled him to develop the initial effect of taxes, also existed in Ricardo, into the long-term consequences on the stationary state. In this sense, Senior was the orthodox successor of Ricardo, which means that his growth theory should be understood in the continuity with Ricardo’s growth theory. |
| Keywords: | Nassau Senior; David Ricardo; tithe; economic growth; stationary state |
| JEL: | B12 B31 |
| Date: | 2025–08–30 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125970 |
| By: | Jesus Felipe; John McCombie |
| Abstract: | This paper offers a retrospective view of the key pillar of Solow's neoclassical growth model, namely the aggregate production function. We review how this tool came to life and how it has survived until today, despite three criticisms that undermined its raison d'etre. They are the Cambridge Capital Theory Controversies, the Aggregation Problem, and the Accounting Identity. These criticisms were forgotten by the profession, not because they were wrong but because of the key role played by Robert Solow in the field. Today, these criticisms are not even mentioned when students are introduced to (neoclassical) growth theory, which is presented in most economics departments and macroeconomics textbooks as the only theory worth studying. |
| Keywords: | Accounting Identity; Aggregation Problem; Cambridge Capital Theory Controversies; Solow |
| JEL: | B22 B31 B32 B41 E13 E25 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1046 |
| By: | Francesco Montaruli (Economic Research Unit, Banca d'Italia, Rome); Roberto Rinaldi (Luiss University - Rome) |
| Abstract: | This paper investigates the monetary theory of the Cambridge School, which emerged from the contributions of Alfred Marshall and Arthur Cecil Pigou between the late 19th and early 20th century. While still grounded in Fisher's quantity equation, the Cambridge School brought significant innovations to monetary theory. It emphasized the various functions of money beyond its role as a means of payment, which was the key insight of the quantity theory of money. The Cambridge School paved the way for new developments, eventually leading to John Mainard Keynes' 'A Treatise on Money' and 'The General Theory'. Specifically, Pigou examined the sum of currency and demand deposits as a ratio to nominal GDP, known as the k ratio. The Cambridge k is influenced by the current state of the economy and expectations regarding the purchasing power of money. Our analysis uses yearly time series data from Italy, spanning from its unification in 1861 to the introduction of the euro. We test the relationship between the k ratio and nominal interest rates. Our findings indicate that k follows a non-stationary process, challenging the notion of a stable velocity of circulation. However, when combined with two nominal non-stationary interest rates, we detect a cointegrating relationship which can be interpreted as a long-term equilibrium. The result of a Vector Error Correction Model (VECM) estimated over the entire time span supports the theoretical predictions of the Cambridge School. |
| Keywords: | the Cambridge School and "k"; money; integration; cointegration; VECM |
| JEL: | B10 B13 C32 E41 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:bdi:workqs:qse_56 |
| By: | Tanweer Akram; Khawaja Mamun |
| Abstract: | This paper critically reviews both mainstream and Keynesian empirical studies of interest rate dynamics. It assesses the key findings of a selected number of these studies, surveying the debates between the mainstream and the Keynesian schools. It also explores the debates on interest rate dynamics within the Post Keynesian school of thought. Lastly, the paper identifies the critical questions relevant for future empirical research. |
| Keywords: | Interest Rate Dynamics; Empirical Modeling of Interest Rates; Mainstream Economics; Keynesian Economics |
| JEL: | E43 E50 E58 E60 G10 G12 |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1043 |
| By: | Mariano Arana (Universidad de Buenos Aires. Facultad de Ciencias Económicas. Instituto Interdisciplinario de Economía Política (IIEP). Centro de Estudios de Historia Económica Argentina y Latinoamericana. Buenos Aires, Argentina.) |
| Abstract: | La investigación examina los orígenes y primeras dos décadas de la AAEP, su evolución organizacional y perfil teórico‑político, aportando una reinterpretación histórica a partir de nuevas fuentes. |
| Keywords: | Asociación Argentina de Economía Política; Historia del pensamiento económico; Economía argentina |
| JEL: | A11 A14 B20 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ake:iiepdt:2025-99 |
| By: | Joerg Bibow |
| Abstract: | This paper revisits Keynes's (1930) essay titled "The economic possibilities for our grandchildren." We discuss the three broader trends identified by Keynes that he expected would come to characterize the socio-economic evolution of advanced countries under individualistic capitalism: first, continued technological progress and capital accumulation as the main drivers of exponential growth in economic possibilities; second, a gradual general rebalancing of life choices away from work; and third, a change in the code of morals in societies approaching an envisioned stationary state of zero net capital accumulation in which mankind has solved its economic problem and enjoys a lifestyle predominantly framed by leisure rather than disutility-yielding work. We assess actual outcomes by 2023 and attempt to peek into the future economic possibilities for this generation's grandchildren. |
| Keywords: | Keynes; technology; growth; work; leisure; capitalism |
| JEL: | B22 B31 E20 J22 N10 Q40 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1038 |
| By: | Mariano Arana (Universidad de Buenos Aires. Facultad de Ciencias Económicas. Instituto Interdisciplinario de Economía Política (IIEP). Centro de Estudios de Historia Económica Argentina y Latinoamericana (CEHEAL). Buenos Aires, Argentina.) |
| Abstract: | Este trabajo describe el Programa de Desarrollo de la Escuela de Economía en la FCE-UBA durante la década de 1960, en asociación con la Fundación Ford, y analiza su impacto en la educación económica en Argentina, sus tensiones y resultados. |
| Keywords: | Economistas; Fundación Ford; Desarrollo económico; Universidad de Buenos Aires; Ciencias Económicas |
| JEL: | A11 A14 A23 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ake:iiepdt:2024-91 |
| By: | Lukas Baeurle (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Socio-Ecological Transformation Lab, Johannes Kepler University Linz, Austria; Department of Socioeconomics, University of Hamburg, Germany); Sabine Maasen (Department of Socioeconomics, University of Hamburg, Germany) |
| Abstract: | Contemporary societies face a persistent polycrisis in which socioeconomic, ecological, technological, and geopolitical challenges intersect and reinforce each other. This volatility exposes the limitations of linear, mono-paradigmatic responses and places new demands on the production and circulation of knowledge. This is also true for economic matters, policies and rationales: While mainstream economics remains characterised by abstraction, disciplinary closure, and expertocratic policy advisory, an alternative ecosystem has emerged, also in the German-speaking world: the New Economy Space (NES). This article reconstructs the NES as a boundary-spanning dispositif of knowledge production that combines critical resources from pluralist economics with broader societal trends towards transdisciplinarity and impact orientation. Drawing on interviews, organisational documents, and observations of networking events, the study identifies three defining features of NES knowledge production: the continuous establishment of agile addresses, a pronounced orientation towards political impact, and the organisation of transversality across fields. NES think tanks thereby translate heterogeneous knowledges and normative positions into strategically crafted interventions for policymakers, media, and civil society. The article situates NES practices in contrast to academic economics and highlights their potential to reshape the epistemic and institutional foundations of economic expertise. It concludes by reflecting on the implications of this emerging model for the future of economics as a science and as a mode of public intervention. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:ico:wpaper:170 |
| By: | Mangave, Darshan |
| Abstract: | This paper observes at Adam Smith’s idea of the “invisible hand” and ask how it works in today’s world of algorithms and digital platforms. In the Wealth of Nations, Smith explained that when people act in their self-interest then markets balance themselves and society benefits. But now, in this century many economic choices are not made only by people. They are guided by algorithms. For examples, this can be seen in Amazon’s product rankings, Uber’s surge pricing, Google’s search results, Netflix’s recommendations, and AI trading in stock markets. These algorithmic systems connect buyers and sellers quickly, but they also create new problems like reduced competition, unfair pricing, manipulation of consumer choices, and market instability. The paper argues that the invisible hand has not disappeared, but it now takes the form of an “algorithmic hand.” For this hand to truly serve society, there must be careful attention to ethics and policy. |
| Keywords: | Adam Smith, Invisible Hand, Wealth of Nations, Algorithms, Digital Economy, Market Competition, Consumer Behaviour, Algorithmic Pricing, Platform Capitalism, Economic Policy. |
| JEL: | B12 D47 K23 L17 L86 O33 |
| Date: | 2025–09–14 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126154 |
| By: | SALGUERO, RICARDO ALONZO FERNANDEZ |
| Abstract: | El Consenso de Washington ha sido uno de los paradigmas de política económica más influyentes y controvertidos de finales del siglo XX. Concebido como un decálogo de reformas orientadas al mercado, su implementación generó un vasto cuerpo de literatura que evalúa sus impactos. Esta revisión narrativa cualitativa sintetiza la evidencia de 53 estudios académicos para ofrecer una visión panorámica de su legado. Se exploran sus orígenes y evolución, la evidencia empírica que lo asocia con mejoras en el crecimiento, y las críticas que lo vinculan con el aumento de la desigualdad y las crisis económicas. Finalmente, se analiza el surgimiento de narrativas post-consenso, argumentando que esta evolución, más que una ruptura, representa una adaptación estratégica del neoliberalismo. Los hallazgos revelan que, si bien la era de las soluciones universales ha terminado, el paradigma post-consenso a menudo recicla principios fundamentales bajo un nuevo lenguaje de inclusión y especificidad contextual, planteando nuevos desafíos para la búsqueda de alternativas de desarrollo genuinas. |
| Date: | 2025–10–17 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:krshu_v1 |
| By: | Gabriel Galvez-Behar (IRHiS - Institut de Recherches Historiques du Septentrion (IRHiS) - UMR 8529 - Université de Lille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Cette contribution revient sur l'une des figures de l'histoire de la conception, désignée par des expressions diverses : « l'inventeur indépendant », « l'inventeur entrepreneur » ou « l'inventeur autonome ». Se concentrant sur le moment particulier de l'essor de la grande entreprise et d'« industriation du travail de l'esprit » au tournant des XIXe et XXe siècles, elle s'interroge sur la résistance dans le temps de cette figure alors même que l'activité inventive devient incorporée dans la grande entreprise ou dans l'organisation de grande taille. |
| Keywords: | invention, inventor |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04701477 |