nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2010‒03‒13
five papers chosen by
Karl Petrick
University of the West Indies

  1. Neoclassical Growth Theory and Heterodox Growth Theory: Opportunities For and Obstacles To Greater Engagement By Mark Setterfield
  2. The Global Crisis in Low- and iddle-Income;Countries: How the IMF Responded By Andrea Filippo Presbitero; Alberto Zazzaro
  3. Marx on absolute and relative wages By Levrero, Enrico Sergio
  4. Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism By Alpar Lošonc
  5. Trade Liberalisation and The Poverty of Nations: A Review Article By Prema-chandra Athukorala

  1. By: Mark Setterfield (Department of Economics, Trinity College)
    Abstract: This paper explores the possibilities for and likely impediments to greater engagement between neoclassical and heterodox growth theorists. Simple structural models are used to identify the essential “mechanics” of the growth process in both the neoclassical and heterodox traditions, and these are shown to point to important areas of theoretical overlap and even observational equivalence. It is argued, however, that the resultant opportunities for greater engagement between growth theorists are tempered by a number of obstacles, that are methodological, rhetorical and sociological in nature.
    Keywords: Neoclassical growth theory, heterodox growth theory, endogenous growth
    JEL: O40 E12 E13
    Date: 2009–12
  2. By: Andrea Filippo Presbitero (Universit… Politecnica delle Marche, Department of Economics, MoFiR); Alberto Zazzaro (Universit… Politecnica delle Marche, Department of Economics, MoFiR)
    Abstract: Developing countries are the least to blame for the outbreak of the nancial crisis, but they are destined to suer the most dramatic and long-lasting consequences. This chapter focuses on the early responses of the International Monetary Fund to the present crisis in low- and middle-income countries. The IMF lending policy has been harshly criticized for being sensitive not only to the fundamental imbalances in the economic conditions of borrowing countries, but also to their lobbying capacity and to political-economy interests of the IMF's major shareholders, i.e., the USA and G-7 countries, which dominate the decision-making process and the Fund's view of good economic policies. Preliminary analysis of the 2008 and 2009 IMF arrangements shows that, notwithstanding the recent changes in the lending framework and the severity of the global crisis, the Fund's credit allocation is still mainly driven by the strategic interests of Western countries, instead of the macroeconomic conditions of recipients.
    Keywords: Global crisis, IMF programs, Washington Consensus, growth
    JEL: F33 F34 F35 O11
    Date: 2010
  3. By: Levrero, Enrico Sergio
    Abstract: The aim of this paper is to clarify some aspects of Marx's analysis of the determinants of wages and of the peculiarities of labour as a commodity, concentrating upon three related issues. The first is that of Marx's notion of the subsistence (or natural) wage rate: subsistence wage will be shown to stem, according to Marx, from socially determined conditions of reproduction of an efficient labouring class. The second issue refers to the distinction between the natural and the market wage rate that can be found in Marx, and his critique of Ricardo's analysis of the determinants of the price of labour. Finally, Marx's analysis of the effects of technical progress on both absolute and relative wages will be considered, also relating it back to the long-standing debate on the Marxian law of the falling rate of profit.
    Keywords: Marx; subsistence wage; wages and productivity; Marxian law of the falling rate of profit
    JEL: B51 E25 B14
    Date: 2009–09
  4. By: Alpar Lošonc (Faculty of Technical Sciences, Department for Social Sciences, Novi Sad, Serbia)
    Date: 2009–11
  5. By: Prema-chandra Athukorala
    Abstract: This paper aims to contribute to the contemporary policy debate on the role of trade policy reforms in economic development and poverty reduction in developing countries through a review of Trade Liberalisation and The Poverty of Nations by A.P. Thirlwall and Penelope Pacheco-Lopez (Cheltenham, UK: Edward Elgar). It begins with a chapter-by-chapter summary of the book while emphasising the main strengths and novel contributions. This is followed by an evaluation of the key inferences in the context of an interpretative survey of the related literature.
    Keywords: trade policy, globalisation, poverty
    JEL: O19 O24 O50
    Date: 2010

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