|
on History and Philosophy of Economics |
| By: | L. Randall Wray |
| Abstract: | This working paper integrates the credit money approach (associated with Post Keynesian endogenous money theory) with the state money approach (associated with Modern Money Theory) by drawing on Wray's 1990 book (Money and Credit in Capitalist Economies: The Endogenous Money Approach, Edward Elgar), his 1998 book (Understanding Modern Money: the Key to Full Employment and Price Stability, Edward Elgar), and his 2004 edited book (Credit and State Theories of Money: The Contributions of A. Mitchell Innes, Edward Elgar). New sources and interpretation of the history of money make it clear that there is no contradiction between state money and private credit money--each played a role in the creation of the modern monetary system. Indeed, today's system was created by bringing state money into the private money giro, thereby strengthening both. |
| Keywords: | credit money; state money; Modern Money Theory (MMT); Bank of England; fiat money; giro money; history of money; central bank; nominalism; origins of money |
| JEL: | B25 B52 E42 E58 E62 N11 N20 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1076 |
| By: | Alberto Baccini |
| Abstract: | This article challenges the conventional reading of Francis Ysidro Edgeworth by reconstructing his intellectual project of unifying the moral sciences through mathematics. The contribution he made in the first phase of his writing, culminating in \textit{Mathematical Psychics}, aimed to reconfigure utilitarianism as an exact science, grounding it in psychophysics and evolutionary biology. In order to solve the utilitarian problem of maximizing pleasure for a given set of sentient beings, he modeled individuals as ``quasi-Fechnerian'' functions, which incorporated their capacity for pleasure as determined by their place in the evolutionary order. The problem of maximization is solved by distributing means according to the individuals' capacity for pleasure. His radical anti-egalitarian conclusions did not stem from an abstract principle of justice, but from the necessity to maximize welfare among naturally unequal beings. This logic was applied not only to sentients of different evolutionary orders, such as Mr. Pongo, a famous gorilla, and humans, but also to human races, sexes, and classes. The system, in essence, uses the apparent neutrality of science to naturalize and justify pre-existing social hierarchies. This analysis reveals that the subsequent surgical removal of his utilitarianism by economists, starting with Schumpeter, while making his tools palatable, eviscerates his overarching philosophical system. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.20854 |
| By: | Alberti, Manfredi; Telesca, Giuseppe |
| Abstract: | This paper aims at challenging a consolidated reading of the 1970s as an age of crisis par excellence, from the perspective of Britain and Italy. It focuses on both real economic facts and their interpretation by economists, “second hand dealers in economic ideas” and policy makers. We reflect on the actors who “proclaimed” the crisis in the 1970s and the recipes they suggested to overcome it. We argue that the rise of neoliberalism and the paradigm change in economic policies were also the product of a narrative construction, influenced by political and ideological reasons, which contrasted an extremely negative picture of the 1970s to a very positive, nearly caricatural, representation of the 1980s. |
| Keywords: | 1970s crisis; narrative economics; Keynesianism; neoliberalism; monetarism. |
| JEL: | B0 N1 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126624 |
| By: | Buchner, Martin; Rose, Julian; Johannesson, Magnus; Malan, Mandy; Ankel-Peters, Jörg |
| Abstract: | Consensus is crucial to authoritative science, as is replicability. Yet, in economics and the social sciences, the publication of contradictory replications often sparks fierce debates between replicators and original authors. This paper investigates whether experts can reach a consensus on a famous yet unsettled debate about the robustness of the seminal paper by Acemoglu, Johnson, and Robinson (AJR, 2001) following a replication by Albouy (2012). We recruited 352 experts mainly from the pool of scholars citing one of the involved or similar articles. Through a structured online questionnaire, we assess the extent to which these experts align with AJR or Albouy. Our findings indicate no consensus on whether the original results hold after Albouy's replication, although there is a slight tendency among experts to side with the replicator. Exploratory heterogeneity analysis suggests that experts with greater academic credentials are more likely to align with Albouy. Our study demonstrates a potential way to scope scientific consensus formation and navigate replication debates and contested literatures. |
| Abstract: | Konsens ist für die autoritative Wissenschaft ebenso zentral wie Replizierbarkeit. In den Wirtschafts- und Sozialwissenschaften führen widersprüchliche Replikationen jedoch häufig zu intensiven Auseinandersetzungen zwischen den Replizierenden und den ursprünglichen Autorinnen und Autoren. Dieser Beitrag untersucht, ob sich Expertinnen und Experten in einer bekannten, aber bis heute ungelösten Debatte über die Robustheit der einflussreichen Studie von Acemoglu, Johnson und Robinson (AJR, 2001) nach der Replikation durch Albouy (2012) auf einen gemeinsamen Standpunkt einigen können. Wir haben 352 Expertinnen und Experten rekrutiert, überwiegend Forschende, die AJR oder ähnliche Arbeiten zitieren. Mithilfe eines strukturierten Online-Fragebogens erfassen wir, in welchem Maße sie mit den Ergebnissen von AJR oder Albouy übereinstimmen. Unsere Ergebnisse zeigen, dass kein Konsens darüber besteht, ob die ursprünglichen Befunde nach Albouys Replikation Bestand haben - auch wenn eine leichte Tendenz erkennbar ist, sich auf die Seite des Replikators zu stellen. Eine explorative Heterogenitätsanalyse deutet darauf hin, dass Expertinnen und Experten mit höherer akademischer Qualifikation und Erfahrung eher Albouys Einschätzung teilen. Die Studie zeigt darüber hinaus einen möglichen Weg auf, wie sich die Bildung wissenschaftlichen Konsenses empirisch erfassen und der Umgang mit Replikationsdebatten und kontroverser Literatur besser verstehen lässt. |
| Keywords: | replication, scientific consensus, scientific credibility, expert survey, institutions and growth |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:330180 |
| By: | Patrick Plane (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, UM6P - Université Mohammed VI Polytechnique = Mohammed VI Polytechnic University [Ben Guerir]) |
| Abstract: | Institutions are increasingly recognised as one of the invisible factors which explain long-term economic performance. In 2024, the Nobel Academy awarded its prize to three economists who have made a major contribution to improving knowledge on the subject: Daron Acemoglu, Simon Johnson and James Robinson. This article looks back at some of their most important publications, offering a sometimes-critical commentary on their work and questions the implications it may have, particularly on the impact of iinternational migration on institutions. |
| Abstract: | Les institutions sont reconnues comme étant l'un des facteurs de moins en moins invisibles des performances économiques de long terme. En 2024, l'académie Nobel a décerné son prix à trois économistes ayant largement contribué à l'amélioration de la connaissance sur le sujet : Daron Acemoglu, Simon Johnson et James Robinson. L'article revient sur quelques-unes des publications les plus marquantes des auteurs pour y apporter un commentaire parfois critique et pour identifier les implications que peuvent avoir ces travaux, notamment sur l'incidence des migrations internationales à venir sur les institutions. |
| Keywords: | Colonisation, Social capital, Prosperity, Institutions, Democracy, Capital social, Prospérité, Migrations, Démocratie |
| Date: | 2025–10–21 |
| URL: | https://d.repec.org/n?u=RePEc:hal:cdiwps:hal-05323907 |
| By: | Sun, Yiyang |
| Abstract: | Yang, drawing on his inframarginal economics framework, argued that China's dual-track reforms would fail without constitutional shock therapy, predicting that the absence of proper institutional transitions would lead to corruption and economic stagnation. Conversely, Lin's New Structural Economics advocated for gradual reform based on comparative advantages, arguing that late-comers could benefit by developing industries aligned with their factor endowments. This essay examines the 2002 to 2003 debate between economists Justin Yifu Lin and Xiaokai Yang regarding China's economic reforms and late-comer advantages. Through an analysis of recent empirical evidence (2020-2025), this essay demonstrates that Yang's predictions largely failed to materialize: China's dual-track system succeeded despite lacking constitutional transformation, with state-owned enterprises contributing positively to growth and anti-corruption campaigns improving productivity. However, Lin's framework also proves insufficient in explaining China's success. The paper concludes that economic forecasting necessarily sacrifices scientific rigor in favor of broad generalizations, suggesting that economics should focus on explaining existing phenomena rather than predicting uncertain futures. |
| Keywords: | later-comer advantage/disadvantage; constitutional transition; Chinese economy; dual-track reforms; empirical revolution |
| JEL: | N0 |
| Date: | 2025–10–14 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:129935 |
| By: | James K. Galbraith; Pavlina R. Tcherneva |
| Abstract: | The Central Bank of the United States, the Federal Reserve, has a dual mandate to maintain both full employment and price stability. However, inflation-fighting had always eclipsed the full employment objective without much accountability. Today, the Federal Reserve provides regular testimony before Congress on how well it is achieving its dual mandate. Professor Galbraith wrote that section into law (among others), which requires the Federal Reserve to report to Congress on its work. According to Professor Galbraith, the law intentionally kept the scope of Federal Reserve policy wide. The purpose was not to impose some economic theory on the policymaker, but to promote an open dialogue between the Federal Reserve and Congress over what monetary policy is and does. And yet, the legacy of monetarism continues to influence monetary policy today: the belief that there is a trade-off between inflation and unemployment firmly guides contemporary Federal Reserve policy. Even as the Federal Reserve's own research finds that labor markets are not the driver of inflation, economists, including at the Fed, continue to insist that unemployment and labor market slack are the way to fight price increases. In this keynote, Professor Galbraith highlights other, more effective and enlightened ways of dealing with inflation. Originally issued as EDI Working Paper No. 14, May 2023. |
| Keywords: | Economic Insecurity; Money and Finance |
| JEL: | F30 N10 N14 P16 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1071 |
| By: | Kampmann, David |
| Abstract: | How We Sold Our Future: The Failure to Fight climate Change by J. Beckert, Polity Press, 2025. Overshoot: How the World surrendered to Climate Breakdown by A. Malm and W. Carton, Verso, 2024 |
| JEL: | N0 |
| Date: | 2025–10–21 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:129931 |
| By: | Pierre Pénet (ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay, CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This article investigates the renewed significance of the odious debt doctrine in contemporary sovereign finance. Initially formulated to challenge debts contracted by illegitimate regimes, the doctrine now engages broader debates around creditor accountability and abusive lending practices. Drawing on case studies including Cuba, Costa Rica, Iraq, Ecuador, Venezuela, and Greece, the article traces the doctrine's shift from a legal basis for debt repudiation to a versatile tool of political contestation and market signaling. Despite its legal ambiguity, the odious debt doctrine remains a powerful vehicle for challenging illegitimate debt and redefining sovereign borrowing in an era of intensified scrutiny of creditor behavior.Recent debt crises have seen the rise or resurgence of various legal counter-cultures. This article examines one of their most structured expressions: the doctrine of odious debt. Situated within a broader set of efforts aimed at limiting the unchecked assertion of creditors' rights, the doctrine contributes to an ongoing redefinition of the normative architecture governing sovereign credit relations. Although diverse in design and scope, these approaches share a core idea: debtors have rights and creditors cannot be absolved from responsibilities. In a marked departure from the orthodox conception of sovereign lending, they reject the premise that the mere extension of credit establishes an absolute right to repayment. On the contrary, creditors, too, may be held to standards of accountability, particularly when debt contracts are compromised by elements of illegitimacy.The odious debt doctrine rests on a fundamental contestation of the legal validity of debts contracted under tainted conditions, especially when the borrowing regime lacks legitimacy or when the funds are used for purposes contrary to the public interest.Originally articulated in the early 20th century in relation to issues of state succession, the doctrine has undergone successive evolutions in both its criteria and scope, |
| Date: | 2025–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05151682 |
| By: | William Van Lear; Daniel Hutchinson |
| Abstract: | This manuscript presents a detailed summary and reassessment of the 1941 final report of the Temporary National Economic Committee (TNEC). We portion the manuscript into four major parts: background, major themes, assessment of the report, and additional analysis and reflection. In the first section, we cover what compelled the government's investigation and we identify the committee's makeup and mission. We also identify eight historical precedents for the report. In the major themes section, we provide a detailed layout of the TNEC's "monopoly investigation" and its search for what structural impediments may have existed to economic recovery during the 1930s. The themes include competition, concentration, technology, trade barriers, business investment, small business, and fiscal and monetary policy. Part 3 assesses the report by looking at one important early assessment completed in the 1940s. We identify three TNEC concerns, namely the (1) development of oligopoly, (2) savings-investment imbalance, and (3) war mobilization and democracy. Part 3 understands the TNEC report from an institutionalist or stage theory perspective of history and economics. This part ends with a review of conservative thinking at the time of the report and shortly thereafter. The final section looks at the connection between the institutional context of the economy and the economy's economic performance. It is clear that the TNEC understood that systemic economic change had occurred since the Gilded Age, and that the economy had become oligopolized well before the Great Depression. The committee came to believe that the evolution of the economic system into a concentrated corporate one had increased inequality, the effect of which was to boost the volume of savings while retarding the level of investment. |
| Keywords: | Government Report; Economic Concentration; Structural Impediments; Political Economy |
| JEL: | F30 N10 N14 P16 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1078 |
| By: | Lin, Ziruo |
| Abstract: | This essay compares the influence of Confucianism in China and the Protestant ethic in Europe on both formal and informal institutions, examining their role in shaping divergent economic trajectories. Drawing on historical and institutional analysis, this essay integrates insights from economic history, sociology, and political theory. The findings contribute to debates on the cultural origins of the Great Divergence and offer broader insights into how culture interacts with governance structures and economic incentives over the long run. Understanding these historical dynamics is valuable not only for explaining the Great Divergence but also for interpreting contemporary patterns of development, governance, and social trust. In an era where policymakers and international organizations grapple with institutional reform, corruption, and cultural barriers to economic growth, the study highlights the importance of aligning institutional design with prevailing social norms to foster sustainable, inclusive development. |
| Keywords: | Confuscanism; the Protestant ethic; ideology; economy |
| JEL: | J1 |
| Date: | 2025–10–14 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:129934 |