nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2008‒05‒24
nine papers chosen by
Karl Petrick
University of the West Indies

  1. The psychology of financial markets: Keynes, Minsky and emotional finance By Sheila Dow
  2. The social science of economics By Brian Loasby
  3. Risk and uncertainty in central bank signals By Sheila Dow; Matthias Klaes; Alberto Montagnoli
  4. Representations of knowledge in monetary policy processes: a discursive perspective By Dana Gabor
  6. Beyond sociology: structure, agency, and strategy among tenants in India By Wendy Olsen
  7. Hayek's challenge to economists By Brian Loasby
  8. BRINGING INSTITUTIONS INTO HEALTH ECONOMICS By Liliana Chicaíza; Mario García; Jaime Lozano
  9. MARX Y EL DINERO; ¿Cuál es el Camino? By Iván Darío Velásquez Garzón

  1. By: Sheila Dow (SCEME, University of Stirling)
    Keywords: uncertainty, Keynes, Minsky, emotional finance
    JEL: B41
    Date: 2008–05
  2. By: Brian Loasby (SCEME, University of Stirling)
    Abstract: The argument of this paper is that much modern economics is drastically undersocialised because it lacks an understanding of the distinctive characteristics of the evolved human mind, despite the significant insights provided by three of our most famous economists, Adam Smith, Alfred Marshall and Friedrich Hayek. This deficiency results from a failure to apply what may be considered the defining principle of economics, that of analysing the implications of scarcity. These implications challenge the adequacy of a theoretical structure based on the confrontation of preference functions and opportunity sets, even when extended to include formal interdependence, as in game theory; they require both a more modest view of human cognitive abilities and a more extensive view of human motivation and potential.
    Keywords: Adam Smith, Alfred Marshall, Hayek
    JEL: B41 Z1
    Date: 2007–11
  3. By: Sheila Dow (SCEME, University of Stirling); Matthias Klaes (Keele University); Alberto Montagnoli (Department of Economics, University of Stirling)
    Abstract: This paper considers the signalling aspect of monetary policy. We introduce a heuristic framework for the study of signal uncertainty, and use this to analyses the signal uncertainty implicit in the communications of the Bank of England’s Monetary Policy Committee (MPC). Our findings suggest that frequencies of key terms expressing signal uncertainty in MPC minutes may either reflect the degree of confidence implicit in MPC deliberations, or offer evidence for the presence of an irreducible kind of signal uncertainty that shows up as white noise, casting doubt on the soundness of the various qualitative uncertainty indices found in the literature.
    Keywords: MPC, signal uncertainty, central bank uncertainty, word frequencies, uncertainty index, seasonality
    JEL: E52 E58 E12 D81
    Date: 2008–05
  4. By: Dana Gabor (SCEME, University of Stirling)
    Abstract: Exploring knowledge in monetary policy process stands to benefit by departing from conceptualizing knowledge as an objective depiction of reality, a neutral language of science underpinning technocratic policy-making. This paper proposes a postpositivist perspective, approaching knowledge production as a process of struggle over truth claims which structures policy action by establishing boundaries for policy choices. To contextualize the mechanisms of knowledge generation, it explores the adoption by the National Bank of Romania of a new policy framework, Inflation Targeting, in August 2005. This allows a mapping of the knowledge agenda, the knowing subjects allowed to participate in policy talk and avenues for contesting truth claims.
    Keywords: discourse analysis, MPC, monetary policy
    JEL: B41 Z1
    Date: 2007–11
  5. By: Mario García Molina; Eleonora Herrera
    Date: 2008–05–14
  6. By: Wendy Olsen (University of Manchester)
    Abstract: This paper arises from the Global Poverty Research Group, under which I have conducted fieldwork about land rental relationships in rural south India. The paper introduces strategies as a solution to the theorists’ dilemma of choice vs. constraints with particular respect to rural tenants' decisions. My aim is to treat tenants (as both households and as individual agents) in their structural contexts whilst respecting the complexity and co-mutuality of their agency.
    Keywords: globalisation, India, agency, economic sociology
    JEL: B5 O17 O12 O53
    Date: 2008–01
  7. By: Brian Loasby (SCEME, University of Stirling, UK)
    Abstract: Bruce Caldwell argues that Hayek eventually favoured an evolutionary response, and he endorses this recommendation. I am increasingly inclined to agree, although I believe that the concept of evolution needs to be handled with some care. Hayek himself was cautious, not least in The Sensory Order, where he carefully avoided any discussion of the relative roles of evolution within the species and evolution within the individual. He does not even attempt to explain why the sensory order is formed before the physical order. However we can supplement Hayek’s theory of the mind – which seems to be broadly consistent with contemporary neuroscience – with earlier attempts to explain the development of human knowledge.
    Keywords: Hayek, Marshall, evolution
    JEL: Z1 B41
    Date: 2007–10
  8. By: Liliana Chicaíza; Mario García; Jaime Lozano
    Date: 2008–05–14
  9. By: Iván Darío Velásquez Garzón
    Date: 2008–05–14

This nep-pke issue is ©2008 by Karl Petrick. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.