|
on Post Keynesian Economics |
| By: | Thomas I. Palley |
| Abstract: | The stability of the international financial system is in doubt. Analysis of the system has focused mainly on the sustainability of financing the U.S. trade deficit and has failed to understand the microeconomics of transactions within the system. According to this brief by Thomas I. Palley, the international financial system is unsustainable for reasons of demand, not supply. He recommends a global system of managed exchange rates to replace the current system before it crashes, along with the U.S. economy. East Asian economies are pursuing export-led growth and running huge trade surpluses with the United States by actively pursuing policies aimed at maintaining undervalued exchange rates. Their governments continue to accumulate U.S. financial assets in order to support and stabilize the international financial system.While East Asian policymakers are correct in their belief that they can improve economic outcomes through exchange rate intervention, the system is undermining the structure of income and aggregate demand and eroding U.S. manufacturing capacity. |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:lev:levppb:ppb_85&r=pke |
| By: | U. Witt |
| Abstract: | This paper reviews the way of thinking about economic problems and the research agenda associated with the evolutionary approach to economics. The general focus of this approach is on the processes that transform the economy from within and on their consequences for firms and industries, production, trade, employment and growth. The entry highlights the major contributions to evolutionary economics and explains its key concepts together with some of their implications. |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:esi:evopap:2006-05&r=pke |
| By: | W. Max Corden (Department of Economics, The University of Melbourne) |
| Abstract: | The international current account imbalance, where the United States has a vast deficit and several countries, notably Japan, China, Germany and the oil exporters have corresponding surpluses, is usually seen as a problem. The argument here is that current account imbalances simply indicate intertemporal trade – the exchange of goods and services for claims. There are likely to be gains from trade of that kind as from ordinary trade. What then are the problems? This paper considers several scenarios, notably one where net savings of the surplus countries decline so that the world real interest rate rises, and another where the US fiscal deficit is reduced, so that the world real interest rate falls and there could be a world wide aggregate demand problem, essentially caused by the high net savings of the surplus countries. |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2006n13&r=pke |
| By: | Patricia McGrath; ; |
| Abstract: | Advocates of financial regulation, Arestis and Demetriades, argue that financial liberalisation does not impact on financial market efficiency and the allocation of investment. Results in this study find that Czech, Hungarian and Polish firms are subject to scrutiny when applying for credit. The firm’s ability to provide collateral, the potential of the proposed investment project and individual financial backgrounds are all factors that are used before loans are offered, and it likely that allocational efficiency is strengthened in these circumstances, and not weakened. Stiglitz has the view that financial repression improves the quality of the pool of loans. Results here indicate that companies in these countries previously had very limited access to credit while government owned companies and government projects received the bulk of credit. After deregulation it became apparent that the quality of the pool of loans was very poor. This study supports Shaw’s assertion that financial deregulation improves financial deepening. |
| Keywords: | Transition Economies, Industrial Development, Financial Deregulation, Economic Growth, Eastern Europe |
| JEL: | G G2 G21 |
| Date: | 2005–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wdi:papers:2005-804&r=pke |
| By: | C. Cordes; P. J. Richerson; R. McElreath; P. Strimling |
| Abstract: | One reason why firms exist, this paper argues, is because they are suitable organizations within which cooperative production systems based on human social predispositions can evolve. In addition, we show how an entrepreneur – given these predispositions – can shape human behavior within a firm. To illustrate these processes, we will present a model that depicts how the biased transmission of cultural contents via social learning processes within the firm influence employees’ behavior and the performance of the firm. These biases can be traced back to evolved social predispositions. Humans lived in tribal scale social systems based on significant amounts of intra- and even intergroup cooperation for tens if not a few hundred thousand years before the first complex societies arose. Firms rest upon the social psychology originally evolved for tribal life. We also relate our conclusions to empirical evidence on the performance and size of different kinds of organizations. Modern organizations have functions rather different from ancient tribes, leading to friction between our social predispositions and organization goals. Firms that manage to reduce this friction will tend to function better. |
| Keywords: | Theory of the Firm, Cultural Evolution, Entrepreneurship, Firm Performance, Cooperation |
| JEL: | L25 D21 M13 M14 C61 |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:esi:evopap:2006-06&r=pke |
| By: | Jan-Peter Olters |
| Abstract: | Whereas the economics discipline possesses a highly refined theoretical apparatus to analyze the effects of government behaviour on the economy, it has not (yet) managed to fully develop a positively formulated "economic theory of politics" that would permit the integration of the decision-making processes of voters, parties and governments with those of consumers and firms. Considerable recent advances notwithstanding, the large and heterogeneous body of literature has (so far) remained outside the economic mainstrain. The paper surveys the main approaches used to endogenize democratic elements and assesses the underlying reasons for researchers' renewed interest in this field. |
| Keywords: | Economic policy , Public sector , Business cycles , Economic models , |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:01/10&r=pke |
| By: | Benno Torgler |
| Abstract: | The literature on social capital has strongly increased in the last two decades, but, there still is a lack of substantial empirical evidence about the determinants of trust. Most studies have focused on social or generalized trust, while those investigating international trust or trust in international organizations are rare. This empirical study analyses a cross-section of individuals using micro-data of the World Values Survey wave III (1995-1997), covering 38 countries, to investigate trust in international organizations, specifically trust in the United Nations. The results suggest that not only socio-demographic and socio-economic factors have an impact on citizens’ trust in the UN, but also political factors. We also observe externalities. Political trust at the state level leads to a higher trust at the international level. On the other hand, if a state is perceived as dysfunctional, the level of trust declines. |
| Keywords: | International Organizations; United Nations; Trust Social Capital; International Perspective; Political Interest. |
| JEL: | Z13 D73 O19 |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:cra:wpaper:2006-20&r=pke |
| By: | Annette Jäckle (Institute for Social and Economic Research) |
| Keywords: | cost, experiment, measurement error, questionnaire design |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2006-32&r=pke |