|
on Post Keynesian Economics |
| By: | Romain Ranciere; Norman Loayza |
| Abstract: | This paper studies the apparent contradictions between two strands of the literature on the effects of financial intermediation on economic activity. On the one hand, the empirical growth literature finds a positive effect of financial depth as measured by, for instance, private domestic credit and liquid liabilities. On the other hand, the banking and currency crisis literature finds that monetary aggregates, such as domestic credit, are among the best predictors of crises and their related economic downturns. This paper accounts for these contrasting effects based on the distinction between the short- and long-run effects of financial intermediation. |
| Keywords: | Financial crisis , Economic growth , |
| Date: | 2005–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:05/170&r=pke |
| By: | Pier Francesco Asso; Luca Fiorito |
| Abstract: | This paper critically examines Geoffrey Hodgson's recent provocative claim about Frank Knight as being a member of American institutionalism in the interwar years. In the first section of the paper the authors attempt to provide a definition of institutionalism and to emphasize its meaning from a historiographic point of view. The second and third sections analyze the two main methodological struggles between Knight and the institutionalists, namely, the debate during the early 1020s over the use of instinct theory as an explanation of economic behavior, and the subsequent campaign led by Knight in the late 1920s and early 1930s against the behaviorist wing of American institutionalism à la Copeland and Ayres. The fourth section deals with Knight's own brand of institutionalism. Our main conclusions are that, even if Knight's approach to the study of economic behavior shows some significant affinities with American institutionalism, he was not – both sociologically and in terms of his philosophical premises - an institutionalist. |
| JEL: | B15 B25 B41 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:461&r=pke |