nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2004‒12‒20
three papers chosen by
Karl Petrick
Leeds Metropolitan University

  1. Macroeconomic co-ordination as an economic policy concept – opportunities and obstacles in the EMU By Eckhard Hein; Achim Truger
  2. "Industrial Finance Before the Financial Revolution: Japan at the Turn of the Last Century" By Yoshiro Miwa; J. Mark Ramseyer
  3. NeuroEconomics By Dr. Peter Kenning; Hilke Plassmann

  1. By: Eckhard Hein (WSI in der Hans Boeckler Stiftung); Achim Truger (WSI in der Hans Boeckler Stiftung)
    Abstract: This paper traces the euro zone’s inadequate macroeconomic performance in recent years back to the predominance of a restrictive macroeconomic policy mix based on a ‘new monetarist’ approach to economic policy. An approach based on a (post-)Keynesian analysis is presented as a growth and employment-oriented alternative to this restrictive policy mix. Contrary to the strict assignment of macroeconomic goals to the macroeconomic policy actors and their instruments in the ‘new monetarist’ approach, the alternative requires the co-ordination of monetary, fiscal and wage policies in order to achieve growth, high employment and price stability. The paper examines the opportunities for and the obstacles to macroeconomic co-ordination given by the institutional framework of the European Monetary Union.
    Keywords: Macroeconomic policy co-ordination, European Monetary Union, monetary policy, fiscal policy, wages policy
    JEL: E61 E63 E64 E65
    Date: 2004–12–10
  2. By: Yoshiro Miwa (Faculty of Economics, University of Tokyo); J. Mark Ramseyer (Harvard Law School)
    Abstract: In a series of pathbreaking articles, Sylla argues that successful economies experience "financial revolutions" before they undergo their periods of rapid growth. In turn, governments generate these revolutions by putting public finance in order, and thereby giving private investors the incentive to create banks and securities markets. In the U.S., suggests Sylla, Hamilton masterminded the revolution. Might Matsukata, he continues, have done the same in Japan? Consistent with much of Sylla's work, Japan did indeed experience a financial revolution in the late 19th century. Matsukata, however, did not mastermind the revolution in advance of private-sector demand. Instead, private investors created the financial infrastructure in response to demand from industrial firms. What is more, most firms (at least in the pivotal silk industry) raised the funds they needed through trade credit rather than securities markets or banks. In this environment, the financial revolution contributed to economic growth in three ways: (a) the new securities markets funded the very largest firms, particularly the railroad firms; (b) the new banks sold the transactional services that merchants used to provide their trade credit, and (c) the banks supplied some of the funds that the merchants as intermediaries then re-lent to the manufacturing firms.
    Date: 2004–12
  3. By: Dr. Peter Kenning (University of Muenster); Hilke Plassmann (University of Muenster)
    Abstract: Over the last two years a research field has developed under the banner of 'neuroeconomics' in which recent neuroscientific methods are deploid to analyze economically relevant processes. This paper aims to provide an overview of the methodology and current state of neuroeconomic research by giving a brief definition of the concept of neuroeconomics, outlining relevant methodologies, and describing studies undertaken in the current research areas to date. Finally, some future prospects are considered.
    JEL: C9
    Date: 2004–12–15

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