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on Post Keynesian Economics |
| By: | Carabelli Anna M.; Cedrini Mario A. (University of Turin) |
| Abstract: | The paper revisits some foreseeable disasters of the recent history of the global economy, from the consequences of the failed attempt to construct a disciplinary order based on the Washington Consensus paradigm, to the current global crisis, which dramatically showed the vulnerability of the ʺBretton Woods 2ʺ order and contributed to the widespread adoption in Europe of austerity programs. We argue that the historical evolution of the international non‐system since the collapse of the Bretton Woods regime can be regarded as the complete repudiation of the essence itself, and general philosophy, of Keynes’s international economics. We aim at demonstrating, conversely, that Keynesʹs international macroeconomics is the result of the development of an extremely powerful “complexity approach” to international economic relations, and that it still provides a mostly needed theoretical reference to construct, as Keynes himself would say, a "sounder political economy between all nations". |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:uto:cesmep:201201&r=pke |
| By: | Carabelli Anna M.; Cedrini Mario A. (University of Turin) |
| Abstract: | A basic presupposition of the rediscovery, in the times of the crisis, of chapter 12 of the General Theory is that Keynes’s treatment of financial markets, and particularly the use of the notion of convention, represents a crucial novelty in both his economics and philosophy. The article offers complicating remarks to critically discuss this interpretation. In particular, we analyse the complex Keynes-Hume theoretical connection in the light of the Keynes-Sraffa correspondence on Hume’s Abstract, and emphasize the theoretical legacy of Keynes's 1910 lectures on speculation for the analysis of financial markets in the General Theory. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:uto:cesmep:201202&r=pke |
| By: | Yahya Madra; Fikret Adaman |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:bou:wpaper:2013/07&r=pke |
| By: | Fergusson, Leopoldo |
| Abstract: | If property rights in land are so beneficial, why are they not adopted more widely? I propose a theory based on the idea that limited property rights over peasants' plots may be supported by elite landowners (who depend on peasants for labour) to achieve two goals. First, like other distortions such as taxation, limited property rights reduce peasants' income from their own plots, generating a cheap labour force. Second, and unlike taxation, they force peasants to remain in the rural sector to protect their property, even if job opportunities appear in the urban sector. The theory identifies conditions under which weak property rights institutions emerge, providing a specific mechanism for the endogenous persistence of inefficient rural institutions as development unfolds. It also predicts a non-monotonic relationship between the quality of rural property rights and land in the hands of peasants. |
| Keywords: | Political economy, institutions, economic development, taxation, property rights, land, dualism, Political Economy, H2, N10, O1, O10, P16, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ulaedd:146455&r=pke |
| By: | Anat Bracha (Federal Reserve Bank of Boston); Donald J. Brown (Dept. of Economics, Yale University) |
| Abstract: | We propose Keynesian utilities as a new class of non-expected utility functions representing the preferences of investors for optimism, defined as the composition of the investor's preferences for risk and her preferences for ambiguity. The optimism or pessimism of Keynesian utilities is determined by empirical proxies for risk and ambiguity. Bulls and bears are defined respectively as optimistic and pessimistic investors. The resulting family of Afriat inequalities are necessary and sufficient for rationalizing the asset demands of bulls and bears with Keynesian utilities. |
| Keywords: | Uncertainty, Optimism, Afriat inequalities |
| JEL: | D81 G11 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:1891&r=pke |
| By: | Marco Pagano (University of Naples "Federico II", CSEF and EIF) |
| Abstract: | In the past two decades, academic research has produced massive evidence of the beneficial role of financial development for growth and the allocation of investment. Our current vision, however, is dominated by instances of dysfunctional behavior of financial markets associated with acute and widespread crises. This raises the issue of when and why finance ceases to be the “lifeblood” and turns into a “toxin” for real economic activity. This paper is a first step towards an answer. Its thesis is that the metamorphosis occurs when finance becomes “too large” relative to the underlying economy. At this point finance stops contributing to economic growth and comes to threaten the solvency of banks and systemic stability. A related question is why regulation is not designed so as to prevent the financial industry from growing above this threshold. I argue that the answer lies largely in the symbiosis between politicians and the finance industry. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:eie:wpaper:1309&r=pke |
| By: | Conrad, Daren A. |
| Abstract: | The purpose of this paper is to investigate the influence on the theoretical dimension of Marxism, advanced by Cyril Lionel Robert James, on the struggles in the United States in the 1960s and 1970s and to explore the influence that this intellectual had in the development of an understanding of Marxism in the U.S. during this period. In order to do so, it is important to chronologically follow James’s life. For the purpose of this paper, I will discuss some of the aspects of James’s Marxism which will allow us to see how he shaped his thoughts as a Marxist and the extent to which he was able to put his theories into practice. A fragment of James’s autobiography serves as a useful illustration: I had been reading…But the people who had passion, human energy, anger, violence and generosity were the common people whom I saw around me. They shaped my political outlook and from that day to this day those are the people with who I am concerned the most. That’s why I was able to understand Marx very easily, and particularly Lenin. When I went into Marxism I was already well prepared…Even in my days of fiction I had the instinct which enable me to grasp the fundamentals of Marxism so easily and then to work at Marxism having the basic elements of a Marxist view – my concern with the common people. James’s method was more or less empirical and his observations formed the basis for his exploration of ideas. |
| Keywords: | Marxism, CLR James |
| JEL: | B0 B00 B10 |
| Date: | 2013–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:46039&r=pke |