nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2013‒12‒29
seven papers chosen by
Karl Petrick
Western New England University

  1. An issue with own-rates: Keynes borrows from Sraffa , Sraffa criticises Keynes, and present-day commentators get hold of the wrong end of the stick By Grieve, Roy H
  2. Did Keynes in the General Theory significantly misrepresent J S Mill? By Grieve, Roy H
  3. Evolutionary Economics By Kurt Dopfer
  4. The Future of Evolutionary Economics: Why Modalities Matter By Ulrich Witt
  5. Lectures on John Maynard Keynes’ General Theory of Employment, Interest and Money (3): Chapter 3, “The Principle of Effective Demand” By Brian S. Ferguson
  6. Learning from the makers of history: Bolshevism, Bolivarianism, and the Legacy of Hugo Chavez By Freeman, Alan
  7. What Remains of the Theory of Demand Management in a Globalising World? By Amit Bhaduri

  1. By: Grieve, Roy H
    Abstract: Scholars who in recent years have studied the Sraffa papers held in the Wren Library of Trinity College, Cambridge, have concluded from Sraffa’s critical (but unpublished) observations on Chapter 17 of Keynes’s General Theory that he rejected Keynes’s central proposition that the rate of interest on money may come to ‘rule the roost’, thus dragging the economy into recession. While Sraffa does indeed express dissatisfaction with Chapter 17, the commentators have, we believe, misunderstood his concern: we suggest that he was unhappy with the ‘own-rates’ terminology employed by Keynes rather than with the substance of the theory developed in Chapter 17.
    Keywords: Chapter 17 of Keynes’s General Theory, commodity-rates, own-rates of interest,
    Date: 2013
  2. By: Grieve, Roy H
    Abstract: It has been alleged that J M Keynes, quoting in the General Theory a passage from J S Mill's Principles, misunderstood the passage in question and was therefore wrong to cite Mill as an upholder of the 'classical' proposition that 'supply creates its own demand'. We believe that, although Keynes was admittedly in error with respect to, so-to-say, the 'letter' of Mill's exposition, he did not mislead readers as to the 'substance' of Mill's conception. The purpose of this paper is to demonstrate that J S Mill did indeed stand for a 'classical' position, vulnerable to Keynes's critique as developed in the General Theory. [This is a revised version of an earlier working paper: 'Keynes, Mill and Say's Law', Strathclyde Papers in Economics, 2000/11]
    Keywords: Keynes and the 'classics', John Stuart Mill, Say's Law,
    Date: 2013
  3. By: Kurt Dopfer
    Date: 2013–12–18
  4. By: Ulrich Witt
    Abstract: The label "evolutionary" is currently used in economics to describe a variety of theories and topics. Far from inspiring the paradigmatic shift envisioned by some of the early proponents of evolutionary economics, the patchwork of theories and topics in this field demonstrates the need of an overarching interpretative frame. In other disciplines, the adoption of the Darwinian theory of evolution extended by hypotheses on cultural evolution has led to such a paradigm shift. This paper explores what can be accomplished by adopting that theory as an interpretative frame also for economics. Attention is directed in particular to the modalities of causal explanations that are germane to such a frame. The relevance of these modalities to the various thematic and theoretical specializations carrying the label "evolutionary" in economics is established to demonstrate the suitability as a common frame. Moreover, these modalities suggest a criterion on the basis of which evolutionary research can be distinguished from non-evolutionary research in economics. The case of institutional economics is used to outline some implications in an exemplary fashion.
    Date: 2013–12–18
  5. By: Brian S. Ferguson (Department of Economics and Finance, University of Guelph)
    Abstract: In Chapter 3 of the General Theory, Keynes sketches out what he calls the essence of the General Theory of Employment. He introduces the Keynesian expenditure-based model, his aggregate demand function and also his aggregate supply function, a concept which spawned much debate among Post-Keynesian economists but which was, for a long time, virtually ignored in mainstream macroeconomics. He sets out the Savings = Investment version of Say’s Law and outlines how an economy can settle into an equilibrium at less than full employment.
    Keywords: Keynes, General Theory, Keynesian Economics, Classical Economics, Aggregate Demand, Aggregate Supply, Unemployment Equilibrium, Say’s Law.
    JEL: B10 B12 B13 B22 B31 E12 N12 N14
    Date: 2013
  6. By: Freeman, Alan
    Abstract: This is a pre-publication version of an article published by the journal ‘America Latina XXI’. It was originally produced as a tribute to Hugo Chavez and a critical reflection on his reception outside Venezuela, on the occasion of his death.
    Keywords: Chavez, Venezuela, Bolivarianism, Bolshevism
    JEL: B00 B50 O10
    Date: 2013–05–06
  7. By: Amit Bhaduri
    Abstract: The paper explains a curious redirection of economic policies that uses the policy framework of Kalecki and Keynes only to undermine it. It does not negate their theory of demand management, but reformulates it to serve the powerful interests of finance in the era of financial globalisation. As a result accountability to finance rather than to the citizens becomes more important for democratic governments and credit rating dominates democratic performance.
    Keywords: aggregate demand, real and money wage, income distribution, trade war, shadow banks, endogenous money, credit rating
    JEL: E21 E42 E44 E62 F21 F51 G12 G15
    Date: 2013–12

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