nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2013‒07‒05
four papers chosen by
Karl Petrick
Western New England University

  1. An analytical framework for the Post-Keynesian macroeconomic paradigm By Herr, Hansjörg
  2. Does The Keynesian Absolute Income Hypothesis Exist in Pakistan? By Shahbaz, Muhammad; Nawaz, Kishwer; AROURI, Mohamed El Hedi; Teulon, Frédéric
  3. Austerity in the Euro area: The sad state of economic policy in Germany and the EU By Truger, Achim
  4. Uncertainty, Instability, and the Control of Markets By Jo, Tae-Hee

  1. By: Herr, Hansjörg
    Abstract: The original Keynesian paradigm differs from the Neoclassical Synthesis and even more so from the New-Keynesian approach. In this paper, a modern framework for the original Keynesian paradigm is presented. It will highlight the key elements of the paradigm. A model is developed to determine output, unemployment and price level changes. Finally, the paper draws policy conclusions based on Keynesian original thinking. The purpose of the paper is not only to give a framework of Keynesian thought, but also to stimulate debate and discussion within the Post-Keynesian camp. The paper is written in a way which allows nonexperts in the field to follow the argumentation. However, not all ramifications of the Post- Keynesian paradigm can be covered. --
    Keywords: economic paradigm,Keynesian economics,output and employment,inflation,economic policy
    JEL: E12 E20 E31 E50 E58
    Date: 2013
  2. By: Shahbaz, Muhammad; Nawaz, Kishwer; AROURI, Mohamed El Hedi; Teulon, Frédéric
    Abstract: The present paper contributes in existing economic literature by investigating the validation of the Keynesian Absolute Income hypothesis in Pakistan by applying the ARDL approach to cointegration. The findings of this paper indicate the validation of the Keynesian absolute income hypothesis in Pakistan, where public savings and financial development add in private savings. This study opens up new insights for government to improve the level of private savings.
    Keywords: Private savings, Co-integration, Pakistan
    JEL: C5
    Date: 2013–07–01
  3. By: Truger, Achim
    Abstract: The Euro area is currently going through its worst period of recession and economic stagnation since the Great Depression and World War II. The article tries to give an impression of the extraordinary degree of fiscal austerity and the devastating economic effects it has already had and must be expected to have in the near future. In addition it is argued that both the lack of economic justification and the devastating consequences of the fiscal policies currently executed should have been absolutely obvious even from a mainstream perspective. Therefore the sad state of economic policies in the Euro area is that it did not even follow moderate mainstream proposals but instead seemed to rely on radical and outdated theoretical or purely ideological foundations. Germany as the most economically and politically influential member state of the Euro area seems to be most infected by such radical ideas. --
    Keywords: fiscal policy,Hamburg appeal,austerity,debt brake,fiscal compact,Germany,Euro area
    JEL: E61 E62 E64 E65 H62 H63
    Date: 2013
  4. By: Jo, Tae-Hee
    Abstract: Grounded in the methodological commitments shared by various traditions in heterodox economics, this paper explores going enterprises’ cooperative actions to control markets through social networks. It is argued that 1) market institutions are created and controlled by business enterprises and the state, that 2) competition and cooperation among business enterprises are two sides of the same coin, that 3) competition is regulated, and hence that 4) market instability is managed, if not eliminated, by those who control the market. Such arguments lead to the managed competition thesis that encompasses corporate governance, market governance, and market regulation in an integrative manner.
    Keywords: Market control, managed competition, uncertainty, instability
    JEL: B5 D40
    Date: 2013–07–01

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