|
on Post Keynesian Economics |
| By: | David Laidler (University of Western Ontario) |
| Abstract: | This paper examines Robert E. Lucas's views on the relationship of macroeconomics to real world economic phenomena, and on Keynes's place in its history, suggesting that these stem from a particular and debatable understanding of how the subdiscipline has evolved. It considers some implications for today's awkward economic facts of aspects of Keynes' General Theory, not so much its speculations about the role of psychology and social conventions in the economic decisions of individual agents recently highlighted by Akerlof and Shiller (2009) however, as its insights into the influence of the monetary system on the coordination of these decisions, along lines later extended by Clower (1965) and Leijonhufvud (1968). It concludes that the questions about co-ordination that Keynes addressed, not to mention some of his answers, are well worth revisiting. |
| Keywords: | Crisis; Co-ordination; Clearing Markets; Auctioneer; Money; Financial Markets; Animal Spirits; Psychology; Keynes; Lucas |
| JEL: | B22 B31 E12 E13 E32 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:uwo:uwowop:20092&r=pke |
| By: | Rainer Kattel; Jan A. Kregel; Erik S. Reinert |
| Abstract: | In this essay we aim to show, first, how the classical development economics, that of Ragnar Nurkse's (1907-1957) generation, epitomized the best development practices of the past 500 years and crafted them into what Krugman rightly calls high development theory. It is not a coincidence that the post-World-War-II era, when Nurkse and others ruled the development mainstream, is one of exceptionally good performance for many poor countries. Second, we argue that the alleged death of the classical development economics and subsequent rise of the Washington Consensus has to do not so much with increasing modeling in economics, a way of research purposely discarded by many classical development thinkers, but much more with misunderstanding the reasons for East Asia's success and Latin America's demise; we show that the root cause of this misunderstanding - that goes in fact back to 'misreading' key passages in Adam Smith - is the role of technology, or of increasing returns activities, and of finance, in development. Third, we aim to indicate key areas of further research that the current development mainstream should pursue in order to re-learn how to create middle-income economies and middle-class jobs. |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:tth:wpaper:21&r=pke |
| By: | Kleiner, George B. |
| Abstract: | The basics of a new theory of economic systems are proposed in this article as a fundamental synthetic field of economics. This theory proposes to unify a description of economic phenomena usually studied by different areas of economics: economic agents, i.e., legal and physical entities, formal and informal institutions, economic processes, and projects. A basic classification of economic systems is developed, their key functions are defined, and the need for power parity of the basic types of economic systems is proved. The results obtained are used to classify the types of national economic policy and elaborate measures aimed at preventing crisis phenomena and building a well-balanced economy. |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:rrcwps:13&r=pke |
| By: | Carlota Perez |
| Abstract: | This paper locates the notion of technological revolutions in the Neo- Schumpeterian effort to understand innovation and to identify the regulari- ties, continuities and discontinuities in the process of innovation. It looks at the micro- and meso-foundations of the patterns observed in the evolution of technical change and the interrelations with the context that shape the rhythm and direction of innovation. On this basis, it defines technological revolutions, examines their structure and the role that they play in rejuve- nating the whole economy through the application of the accompanying techno-economic paradigm. This over-arching meta-paradigm or shared best practice .common senseÿ is in turn defined and analysed in its compo- nents and its impact, including the influence it exercises on institutional and social change. |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:tth:wpaper:20&r=pke |
| By: | Frank Partnoy (University of San Diego School of Law) |
| Abstract: | The first part of the paper describes how over time credit rating agencies ceased to play the role of information intermediaries. Rating agencies did not provide information about the risk associated with the securitized instruments, but they simply enabled structurers to create and maintain tranches of these instruments with unjustifiably high credit ratings. The second part of the paper suggests how future policy may minimize overdependence on credit ratings, by removing regulatory licences and by implementing shock-therapy mechanisms to wean investors simple rating mnemonics. |
| Keywords: | Rating Agencies, Subprime Mortgages, Securitization |
| JEL: | G24 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.27&r=pke |