nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2014‒09‒25
six papers chosen by
Karl Petrick
Western New England University

  1. On the Cambridge, England, Critique of the Marginal Productivity Theory of Distribution By Geoff C. Harcourt
  2. Application of Minsky’s theory to state-dominated economies By Yulia Vymyatnina; Mikhail Pakhnin
  3. Classical Competition and Freedom of Contract in American Laissez Faire Constitutionalism By Nicola Giocoli
  4. Institutional and policy convergence with growth divergence in Latin America By NU. CEPAL. Subsede de México
  5. Putting the Blame on Governments: Why Firms and Governments have Failed to Advance the Guiding Principles on Business and Human Rights By Susan Ariel Aaronson; Ian Higham
  6. La erosión del orden neoliberal del mundo By NU. CEPAL. Subsede de México

  1. By: Geoff C. Harcourt (School of Economics, Australian School of Business, the University of New South Wales)
  2. By: Yulia Vymyatnina; Mikhail Pakhnin
    Abstract: The global financial crisis of 2007–2008, consequences of which continue to adversely affect the world economy, is often called a ‘Minsky crisis’. A prominent American economist Hyman Philip Minsky studied capitalist economic system paying special attention to its major properties, in particular, instability and high importance of money. He developed a consistent way to explain the nature of economic crises, which, according to him, are generated through financial mechanisms. Minsky’s financial instability hypothesis states that the fragility of financial system increases in periods of booms and thus crises arise from the very structure of business cycles. In this paper we give a short review of Minsky’s ideas and show that the last financial crisis could be persuasively explained in the framework of financial instability hypothesis. Moreover, we provide the extension of Minsky’s hypothesis and apply his insights to the ‘state-dominated economies’. Interesting and vivid examples of such economies are modern Russian economy (characterized by weak institutions, resource curse and dominance of state-related companies in the financial as well as non-financial sectors) and planned economy of the Soviet Union. We analyze the financial crisis 2008–2009 in Russia and the breakdown of the USSR and argue that these events could be interpreted along Minsky’s line of argument.
    Keywords: Hyman Minsky, financial crisis, financial instability hypothesis, endogenous money, planned economies, fall of the USSR, theory of money, business cycles, Minsky moment
    JEL: B50 E12 E32 E42 E44 E5 E60 G01 P2
    Date: 2014–08–22
  3. By: Nicola Giocoli
    Abstract: It is impossible to tell the history of American antitrust law and economics during the so-called formative era (1890- 1915) without a preliminary understanding of the economic rationale underlying that major phase of American constitutional law commonly called laissez faire constitutionalism, or Lochner era. The essay is a preliminary effort to locate such a rationale in the almost perfect overlap between classical political economy, especially the notion of competition as the supreme organizing principle of thriving societies, and classical liberalism, in particular the notion of liberty of contract. It is argued that the well-known Progressive interpretation of the Lochner era fails to recognize the true meaning and extent of this overlap. The protagonists of our story are economists Adam Smith, John Stuart Mill and Francis Wayland, and Supreme Court Justices James Wilson, Oliver Wendell Holmes and Rufus Peckham.
    Date: 2014–06–10
  4. By: NU. CEPAL. Subsede de México
    Date: 2012–11
  5. By: Susan Ariel Aaronson (Department of Economics/Institute for International Economic Policy, George Washington University); Ian Higham (EIRIS)
    Date: 2014–06
  6. By: NU. CEPAL. Subsede de México
    Date: 2013–08–22

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