nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2014‒06‒14
five papers chosen by
Karl Petrick
Western New England University

  1. Was the Gibson Paradox for real? a wicksellian study of the relationship between interest rates and prices By Jagjit S. Chadha; Morris Perlman
  2. The plan vs. market controversy in the Marxist tradition By Stavros Mavroudeas
  3. The WTO in Bali - What MC9 means for the Doha Development Agenda and why it matters? By Rorden Wilkinson; Erin Hannah; James Scott
  4. The Environmental Kuznets Curve: A Primer By David I. Stern
  5. Schumpeter and Georgescu-Roegen on the foundations of an evolutionary analysis By Christoph HEINZEL

  1. By: Jagjit S. Chadha; Morris Perlman
    Abstract: We examine the relationship between prices and interest rates for seven advanced economies in the period up to 1913, emphasizing the UK. There is a significant long-run positive relationship between prices and interest rates for the core commodity standard countries. Keynes (1930) labelled this positive relationship the Gibson Paradox. A number of theories have been put forward as possible explanations of the Paradox but they do not fit the long-run pattern of the relationship. We find that a formal model in the spirit of Wicksell (1907)and Keynes (1930) offers an explanation for the paradox: where the need to stabilize the banking sector’s reserve ratio, in the presence of an uncertain natural rate, can lead to persistent deviations of the market rate of interest from its natural level and consequently long run swings in the price level.
    Keywords: Gibson’s paradox; Keynes-Wicksell; prices; interest rates
    JEL: J1
    Date: 2014–05
  2. By: Stavros Mavroudeas (Department of Economics, University of Macedonia)
    Abstract: This paper surveys the ongoing saga of the relationship between plan and market within the Marxist Political Economy.The first part studies the early soviet controversies on this subject. Two opposing main poles are recognised: the first is represented by Preobrazhensky and the second by Bukharin. Furthermore, the theoretical foundations and the implications for economic policy of these two approaches are being clarified. The second part surveys the socialist calculation debate. The third part analyses the Sweezy-Bettelheim debate on the nature of the Soviet Union and the plan-market contradiction.Finally, the last part describes the latest debates on market socialism and attempts to review the positions taken in all the abovementioned debates with regard to the plan-market relationship.
    Keywords: plan, market socialism, Marxism, soviet economics.
    Date: 2014–06
  3. By: Rorden Wilkinson; Erin Hannah; James Scott
    Abstract: Abstract The conclusion of the World Trade Organization’s (WTO) ninth ministerial meeting—held in Bali 3-7 December 2013—is at one and the same time momentous, marginal, and business-as-usual. It is momentous because it marks the first multilateral agreement reached in the WTO since the organisation began operations on 1 January 1995; it is marginal because the deal reached will have only a limited impact on the global trading system; and it is business as usual because the Bali package will be of disproportionally greater value to the industrial states than to their developing and least developed counterparts. We examine what happened in Bali covering the principal issues at stake and the content of the outcome, what this means for the WTO and for the Doha Development Agenda (DDA), and why it all matters. We argue that while the Bali ministerial is significant and the agreements reached important, the conclusion of the meeting and the package agreed represents only a limited movement forward in addressing the fundamental problems and inequities of the WTO system.
    Date: 2014
  4. By: David I. Stern
    Abstract: The environmental Kuznets curve (EKC) is a hypothesized relationship between various indicators of environmental degradation and income per capita. As economies get richer environmental impacts first rise but eventually fall. In reality, though some types of environmental degradation have been reduced in developed countries others have not. Furthermore, the statistical evidence for the EKC is not robust and the mechanisms that might drive such patterns are still contested.
    Keywords: Economic growth, decoupling, pollution, environmental Kuznets curve, convergence
    JEL: Q53 Q56
    Date: 2014–06
  5. By: Christoph HEINZEL (Structures et Marchés Agricoles, Ressources et Territoires)
    Abstract: Qualitative change is widely recognised as a defining feature of evolution. Schumpeter and Georgescu-Roegen put it at the centre of their methodological reasoning. I revisit important contributions of these two authors, paying attention to the immediate relationship of the major traits and treated issues between their works. With reference to qualitative change, their joint approach provides answers as to (i) why an evolutionary analysis has to necessarily apply a varied less formal set of methods as compared with modern static and dynamic analysis, (ii) why an evolutionary analysis is a necessary component of economic analysis and (iii) how it can be seen as complementary to modern statics and dynamics. They argued for methodological pluralism, where the choice of methods shall derive from close observation of the subject matter under scrutiny. Georgescu-Roegen’s reasoning shows the necessity of interdisciplinary contributions and the interrelation of economic activity and environmental impact and constraints, putting environmental issues immediately on the evolutionary economics agenda. The paper provides a new ground for evaluating Georgescu-Roegen’s own and their joint contribution to modern research.
    Keywords: Schumpeter, Georgescu-Roegen, Qualitative change, Evolution, Evolutionary methodology, changement qualitatif, économie évolutionnisteenvironnement, activité économique
    Date: 2013

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