nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2009‒03‒07
four papers chosen by
Karl Petrick
University of the West Indies

  1. Cycles, Contagion and Crises By Nikolaj Schmidt; Ashley Taylor; Charles Goodhart; Amil Dasgupta
  2. How Bad is US Unemployment? By Freeman, Alan; Desai, Radhika
  3. The Past, Present and Future of Industrial Policy in India: Adapting to the Changing Domestic and International Environment By Ajit Singh
  4. The Need for Greater Pro Active Involvement by Regulators in Financial Regulation and Supervision: Lessons From the Legal and General Case By Ojo, Marianne

  1. By: Nikolaj Schmidt; Ashley Taylor; Charles Goodhart; Amil Dasgupta
    Abstract: On 28-29 June 2007, the Financial Markets Group organised a conference covering topics under all three themes of its title, 'Cycles, Contagion and Crises', from the perspective of both developed and emerging economies.
    Date: 2008–11
  2. By: Freeman, Alan; Desai, Radhika
    Abstract: This article assesses the significance of the January 2009 US unemployment figures. The steep fall of 4 million jobs is greater than any 12-month fall in history. Does this mean that 2007-2008 heralds the worst recession since 1929? This article assesses the empirical evidence of the US payroll figures to date.
    Keywords: Keywords: Credit Crunch; Investment; Liquidity Preference; Rate of Profit; State; Welfare State; War; Military Keynesianism
    JEL: E0 E12 E24
    Date: 2009–02–24
  3. By: Ajit Singh
    Abstract: In the post-World War II period India was probably the first non-communist developing country to have instituted a full-fledged industrial policy. The purpose of the policy was to co-ordinate investment decisions both in the public and the private sectors and to seize the 'commanding heights' of the economy by bringing certain strategic industries and firms under public ownership. This classical state-directed industrialisation model held sway for three decades, from 1950-1980. The model began to erode in the 1980s. Following a serious external liquidity crisis in 1991 the model was fundamentally changed. Indian industrial policy in the period 1950 to 1980, as embodied in its five-year plans, has long been the subject of intense criticism from the powerful neo-liberal critics of the country's development. In their view it was the change away from India's traditional industrial policy in 1991 towards liberalisation, de-regulation, and market orientation that ushered in a new era of faster economic growth. This paper takes a wide view of industrial policy, emphasising the government's continuing co-ordinating role in various spheres. It regards the institution of the Planning Commission as a major benefit for the country particularly as its role in formulating industrial policy in the narrow sense and in guiding India's ongoing industrial revolution in the broader sense is still widely accepted by the mainstream political parties of the left and the right (for example, Bhartiya Janata Party, Indian People's Party). The paper suggests that industrial policy and planned economic development did not come to an end with the deregulation of India's traditional investment regime in the 1980s and 1990s. Industrial policy has continued in a different form during the period, facing an agenda of new issues and an updating of older ones. The analysis of this paper suggests that today a central challenge for the Planning Commission is to exploit India's lead in ICT and its `institutional surplus' (democracy, common law legal heritage) to raise the current 8 per cent trend rate of growth to double-digit numbers while maintaining equitable distribution of the fruits of economic progress. To do so, India requires a somewhat different industrial policy than that pursued in the Nehru-Mahalanobis era, or that has been followed since then.
    Keywords: Indian Planning Commission and industrial policy, institutional surplus, ICT
    Date: 2008–12
  4. By: Ojo, Marianne
    Abstract: This paper considers the need for a more pro active approach which facilitates greater on site work being carried out by supervisors – as highlighted in the Legal and General Case. It also considers the recommendations made to the UK’s regulator - the FSA, and in particular to the FSA Board, following the Legal and General Case. The recommendations are compared to the Basel Committee’s Core Principles for Effective Banking Supervision. In drawing a comparison, the importance of independent verification of work carried out by external auditors, be it through on-site examinations or the use of external experts, is once again emphasised. The involvement of external auditors or other experts in the supervisory process should not relieve a regulator from on site supervisory responsibilities. As vital as an external auditor’s work is, it is also important to verify such work.
    Keywords: pro active;monitoring;on-site;supervision;inspections
    JEL: K2
    Date: 2009–02

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