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on Post Keynesian Economics |
| By: | IANCU, Aurel (National Institute of Economic Research, Romanian Academy) |
| Abstract: | Financialisation is a complex and dynamic process of enlarging the monetary and financial relations in economy and society. This paper deals with the analysis of the financial market structure such as: the role and magnitude of financial sectors, the dynamics of the banking sector versus the stock market and the rising role of the shadow banking sector. Also it explains and analyses the ways and modalities to develop financialisation by growing the public and private indebtedness, extension of the securitisation process and using the financial derivatives on a large scale. Considered endogenous factors, they all increase the fragility of the financial system. |
| Keywords: | financialisation, financial sector, stock market, shadow banking, indebtedness, financial innovation, securitisation, financial derivatives |
| JEL: | E44 G01 G18 G23 G24 G28 G32 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:ror:wpince:130307&r=pke |
| By: | Paul de Grauwe |
| Abstract: | I analyse the nature of the design failures of the Eurozone. I argue first that the endogenous dynamics of booms and busts that are endemic in capitalism continued to work at the national level in the Eurozone and that the monetary union in no way disciplined these into a union-wide dynamics. On the contrary the monetary union probably exacerbated these national booms and busts. Second, the existing stabilizers that existed at the national level prior to the start of the union were stripped away from the member-states without being transposed at the monetary union level. This left the member states naked and fragile, unable to deal with the coming national disturbances. I study the way these failures can be overcome. This leads me to stress the role of the ECB as a lender of last resort and the need to make macroeconomic policies more symmetric so as to avoid a deflationary bias in the Eurozone. I conclude with some thoughts on political unification. |
| Date: | 2013–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:erp:leqsxx:p0057&r=pke |
| By: | Alain Béraud (THEMA, Universite de Cergy-Pontoise) |
| Abstract: | This contribution analyzes how Keynes and the keynesians asked the question of the choice of the unit of measure of the macroeconomic aggregates. Underlining the narrow relationships which exist between the lectures which Keynes professed between 1933 and 1935 and the diverse versions of the model IS-LM, it shows that the problems arise from the way Keynes had approached this problem. To argue about the monetary value of the aggregates leads to dichotomiser the model and does not allow to analyze correctly the interdependence between the labor market on one hand and the goods markets and the money market on the other hand. The model so formulated does not allow to treat in a rigorous way the effects of a variation of the monetary wage. It lets think, wrongly, that there is inevitably a full employment equilibrium. |
| Keywords: | Keynes, IS-LM, units of measure. |
| JEL: | B22 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2013-11&r=pke |