nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2006‒08‒26
five papers chosen by
Karl Petrick
Leeds Metropolitan University

  2. "Global Demographic Trends and Provisioning for the Future" By L. Randall Wray
  3. Behavioral Foundations of Democracy and Development By Ethan Kapstein
  4. Real Exchange Rate, Monetary Policy and Employment By Roberto Frenkel; Lance Taylor
  5. The Economic and Social Effects of Financial Liberalization: A Primer for Developing Countries By Jayati Ghosh

  1. By: Caren A. Grown; Chandrika Bahadur; Jessie Handbury; Diane Elson
    Abstract: Although the Millennium Development Goals (MDGs) have been ratified in global and national forums, they have not yet been incorporated into operational planning within governments or international organizations. The weak link between the policies and the investments needed for their implementation is one barrier to progress. An assessment of the resources required is a critical first step in formulating and implementing strategies to achieve the MDGs. This is especially true for policies to promote gender equality and empower women. Although enough is known about such policies to implement them successfully, the costs of such interventions are not systematically calculated and integrated into country-level budgeting processes. Using country-level data, the paper estimates the costs of interventions aimed at promoting gender equality and women's empowerment in Bangladesh, Cambodia, Ghana, Tanzania, and Uganda. It then uses these estimates to calculate the costs of such interventions in other low-income countries. Finally, the paper projects the financing gap for interventions that aim directly at achieving gender equality, first for the five countries, and subsequently for all low-income countries.
    Date: 2006–08
  2. By: L. Randall Wray
    Abstract: The world's population is aging. Virtually no nation is immune to this demographic trend and the challenges it brings for future generations. Relative growth of the elderly population is fueling debate about reform of social security programs in the United States and other developed nations. In the United States, the total discounted shortfall of Social Security revenues has been estimated at about $11 trillion, nearly two-thirds of that comes after 2050. However, this paper argues that those calling for reform have overstated the demographic challenges ahead. Reformers conclude that aging poses such a serious challenge because they focus on financial shortfalls. If we focus on demographics and on the ability to produce real goods and services today and in the future, the likelihood of a real crisis in social security in the United States and developed nations is highly improbable. Demographic changes are too small relative to the growth of output that will be achieved even with low productivity increases. This paper concludes with policy recommendations that will enhance our ability to care for an aging population in a progressive manner that will not put undue burdens on future workers. Policy formation must distinguish between financial provisioning and real provisioning for the future; only the latter can prepare society as a whole for coming challenges. While individuals can, and should, save financial assets for their individual retirements, society cannot prepare for waves of future retirees by accumulating financial trust funds. Rather, society prepares for aging by investing to increase future real productivity.
    Date: 2006–08
  3. By: Ethan Kapstein
    Abstract: Since 1974 the world has experienced a “third wave” of democratization. Ensuring that these new democracies consolidate is critical to both global prosperity and peace. Unfortunately, the academic literature that might help policy-makers shape appropriate foreign assistance programs remains underdeveloped, in that it lacks strong behavioral foundations, or explanations of why people act the way they do. This paper argues that the process of democratic consolidation requires a transition from clientelistic to contractual exchange relationships. Without that transition, efforts to promote democratic consolidation are unlikely to succeed.
    Keywords: democracy, foreign assistance, economic development
    JEL: O17 F35 D73
    Date: 2004–12
  4. By: Roberto Frenkel; Lance Taylor
    Abstract: The exchange rate affects the economy through many channels and, consequently, has diverse macroeconomic and development impacts. Five are analysed in this paper: resource allocation, economic development, finance, external balance and inflation. The use of the exchange rate as a developmental tool in conjunction with its other uses (often in coordination with monetary policy) is at the focus of the discussion.
    Keywords: exchange rate, development policy
    JEL: F3 F4 O2
    Date: 2006–02
  5. By: Jayati Ghosh
    Abstract: This paper considers the main elements of the standard pattern of financial liberalization that has become widely prevalent in developing countries. The theoretical arguments in favour of such liberalization are considered and critiqued, and the political economy of such measures is discussed. The problems for developing countries, with respect to financial fragility and the greater propensity to crisis, as well as the negative deflationary and developmental effects, are discussed. It is concluded that there is a strong case for developing countries to ensure that their own financial systems are adequately regulated with respect to their own specific requirements.
    Keywords: financial liberalization, development banking, financial fragility, financial crisis, deflation.
    JEL: F41 F43 G15
    Date: 2005–10

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