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on Post Keynesian Economics |
| By: | Jan Kregel |
| Abstract: | Past experience suggests that multifunctional banking is the leading source of financial crisis, while large bank size contributes to contagion and systemic risk. This indicates that resolving large banks will not solve the problems associated with multifunctional banking--a conclusion reached after every financial crisis, and one that should apply to the present crisis as well. Senior Scholar Jan Kregel observes that it is important to recognize that past solutions may not be appropriate for present conditions. The approach to the current financial crisis has been to resolve small- and medium-size banks through the FDIC, while banks considered "too big to fail" are given direct and indirect government support. Many of these large government-supported banks have been allowed to absorb smaller banks through FDIC resolution, creating even larger banks. As these institutions repay their direct government support, the problem of "too big to fail" is simply aggravated. Thus, the current thrust of government regulatory reform--increased capital and liquidity requirements, and further legislation--is unlikely to lessen the systemic risks these institutions pose. |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:lev:levypn:09-11&r=pke |
| By: | Matías Vernengo |
| Abstract: | The current economic global crisis has thrown fiscal policy onto the center stage. However, the current crisis episode has not produced any change regarding the standing role and function of fiscal policy in developed and developing market economies that has dominated the economics profession for decades. In fact, the uncertain prospects for recovery underscore the fact that free market economies lack the mechanisms to bring about and maintain full employment. Full employment requires designing and making operational institutions at the national and global levels that can manage aggregate demand. This paper reviews the evidence on current fiscal efforts around the world. |
| Keywords: | Fiscal Policy, Fiscal Deficit |
| JEL: | E62 H62 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:uta:papers:2010_01&r=pke |
| By: | Addison, Tony; Arndt, Channing; Tarp, Finn |
| Abstract: | The global economy is passing through a period of profound change. The immediate concern is with the financial crisis, originating in the North. The South is affected via reduced demand and lower prices for their exports, reduced private financial flows, and falling remittances. This is the first crisis. Simultaneously, climate change remains unchecked, with the growth in greenhouse gas emissions exceeding previous estimates. This is the second crisis. Finally, malnutrition and hunger are on the rise, propelled by the recent inflation in global food prices. This constitutes the third crisis. These three crises interact to undermine the prosperity of present and future generations. Each has implications for international aid and underline the need for concerted action. |
| Keywords: | financial crisis, global food prices, climate change |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-01&r=pke |
| By: | Erik Gartzke; Dominic Rohner |
| Abstract: | Nations have historically sought power and prosperity through control of physical space. In recent decades, however, territorial empire has largely ceased. Most states that can take and hold territory no longer appear eager to do so, while the weak are unable to expand. Have powerful countries become 'kinder and gentler', or has something fundamental changed about the logic of empire? We offer a theory of imperialism and decolonization that explains both historic cycles of expansion and decline and the demise of the urge to colonize. Technological shocks enable expansion, while military technology gradually disseminates, diluting imperial advantage. At the same time, economic development has led to a secular decline in the payoffs for appropriating land, minerals, and reluctant labor. Once conquest no longer pays for great powers, the systemic imperative to vertically integrate production also becomes archaic. |
| Keywords: | Imperialism, decolonization, development, democracy, mercantilism |
| JEL: | D74 N40 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:zur:iewwpx:466&r=pke |