nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2009‒03‒28
five papers chosen by
Karl Petrick
University of the West Indies

  1. "Background Considerations to a Regulation of the U.S. Financial System-- Third Time a Charm? Or Strike Three? " By Jan Kregel
  2. The Housing Crash Recession and the Case for a Third Stimulus By Dean Baker
  3. The common good of the company and the theory of organization By Argandoña, Antonio
  4. Economics: The “Just Right” Liberal-Arts Major?” By David Colander
  5. Investment Bank Welfare? The Implicit Bank Subsidies in the Primary Dealer Credit Facility (PDCF) and the Term Securities Lending Facility (TSLF) Created by the Federal Reserve Board By Dean Baker; Matthew Sherman

  1. By: Jan Kregel
    Abstract: United States financial regulation has traditionally made functional and institutional regulation roughly equivalent. However, the gradual shift away from Glass-Steagall and the introduction of the Financial Modernization Act (FMA) generated a disorderly mix of functions and products across institutions, creating regulatory gaps that contributed to the recent crisis. An analysis of this history suggests that a return to regulation by function or product would strengthen regulation. The FMA also made a choice in favor of financial holding companies over universal banks, but without recognizing that both types of structure require specific regulatory regimes. The paper reviews the specific regime that has been used by Germany in regulating its universal banks and suggests that a similar regime adapted to holding companies should be developed.
    Date: 2009–03
  2. By: Dean Baker
    Abstract: This paper makes the case for a third stimulus package to in the face of economic indicators signaling that the economy is in a deeper downturn than was expected based on previous projections. Specifically, the report calls for an employer tax-credit for extending health care coverage and another per worker employer tax credit for increasing paid time off from work. The author also makes the case for a housing policy centered on the stabilization of prices in non-bubble and deflated markets rather than applying the same efforts on markets that remain at bubble inflated levels. Finally, the paper argues that the dollar must be allowed to fall in order to adjust trade imbalances that are compounding the U.S. economic crisis caused by the collapse of the housing market.
    Keywords: housing bubble, economic stimulus, fiscal stimulus, recession, dollar policy
    JEL: O51 R R2 R21 E E2 E21 E27 E24 E3 E32 E E5 E58 E6 E61 E62 E63 E66 H H2 H5
    Date: 2009–03
  3. By: Argandoña, Antonio (IESE Business School)
    Abstract: The concept of common good occupies a prominent place in political and social philosophy, yet it has had little impact on the theory of the firm. This is despite some recent attempts to resituate the theory of the firm on broader and therefore more fruitful anthropological and social foundations than those of traditional economic theory. The present study connects with other discussions of organization theory based on the ideas of Aristotle and Thomas Aquinas and is an attempt to explain how the concept of common good may be used to broaden the foundations of organization theory.
    Keywords: Catholic social teaching; Common good; Company; Goods; Organization; Organization theory;
    Date: 2009–01–03
  4. By: David Colander
    Date: 2009–03
  5. By: Dean Baker; Matthew Sherman
    Abstract: This study produces calculations of the amount of money being dispersed by the government to the 16 primary dealers and investment banks who qualify to borrow through the special lending facilities created in the last year by the Federal Reserve Board under the assumption that each borrows in proportion to its assets. The study then uses Fed data on the interest rate charged for loans from these lending facilities to calculate the potential subsidy in this lending. The report calls attention to the fact that few details have been given about the specific loan amounts, recipients, or collateral posted.
    JEL: G G2 G24 G28 H H2 H25 E E5 E58
    Date: 2009–03

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