nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2010‒07‒03
two papers chosen by
Karl Petrick
University of the West Indies

  1. The Washington Consensus: Assessing a Damaged Brand - Working Paper 213 By Nancy Birdsall
  2. Strong Subjectivism in the Marxian Theory of Exploitation: A Critique By Veneziani, Roberto; Yoshihara, Naoki

  1. By: Nancy Birdsall
    Abstract: In this paper we analyze the Washington Consensus, which at its original formulation reflected views not only from Washington but also from Latin America. We trace the life of the Consensus from a Latin American perspective in terms of evolving economic development paradigms. We document the extensive implementation of Consensus-style reforms in the region as well as the mismatch between reformers’ expectations and actual outcomes, in terms of growth, poverty reduction, and inequality. We then present an assessment of what went wrong with the Washington Consensus-style reform agenda, using a taxonomy of views that put the blame, alternatively, on (i) shortfalls in the implementation of reforms combined with impatience regarding their expected effects; (ii) fundamental flaws—in either the design, sequencing, or basic premises of the reform agenda; and (iii) incompleteness of the agenda that left out crucial reform needs, such as volatility, technological innovation, institutional change and inequality.
    Keywords: Stabilization, reform, financial markets, macroeconomic policy, government,history of economic thought, institutions, Latin America, Caribbean
    JEL: E63 P11 B25 N16 N26 N46
    Date: 2010–06
  2. By: Veneziani, Roberto; Yoshihara, Naoki
    Abstract: This paper critically analyses the strongly subjectivist approach to exploitation theory recently proposed by Matsuo ([7]), in the context of general convex economies with heterogeneous agents. It is proved that the Fundamental Marxian Theorem is not preserved in his subjectivist approach, contrary to Matsuo's claims, and that no meaningful subjectivist exploitation index can be constructed. It is argued that a minimal objectivism is necessary in exploitation theory, whereby subjective preferences do not play a direct, definitional role. An alternative objectivist approach is briefly analysed, which is related to the 'New Interpretation' ([1]; [3]). It is argued that it captures the core intuitions of exploitation theory and it provides appropriate indices of individual and aggregate exploitation. Further, it is shown that it preserves the FMT in general economies.
    Keywords: Exploitation, subjective preferences, Fundamental Marxian Theorem, general convex cone economies
    JEL: D31 D46 D63 E11 B51
    Date: 2009–11

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