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on Post Keynesian Economics |
| By: | Dimitri B. Papadimitriou; Michalis Nikiforos; Gennaro Zezza |
| Abstract: | The Greek economy has the potential to recover, and in this report we argue that access to alternative financing sources such as zero-coupon bonds ("Geuros") and fiscal credit certificates could provide the impetus and liquidity needed to grow the economy and create jobs. But there are preconditions: the existing government debt must be rolled over and austerity policies put aside, restoring trust in the country's economic future and setting the stage for sustainable income growth, which will eventually enable Greece to repay its debt. |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:lev:levysa:sa_gr_5_15&r=pke |
| By: | Riccardo Realfonzo; Angelantonio Viscione |
| Abstract: | A technical analysis shows that the doomsayers who support the euro at all costs and those who naively theorize that a single currency is the root of all evil are both wrong. A euro exit could be a way of getting back to growth, but at the same time it would entail serious risks, especially for wage earners. The most important lesson we can learn from the experience of the past is that the outcome, in terms of growth, distribution, and employment, depends on how a country remains in the euro; or, in the case of a euro exit, on the quality of the economic policies that are put in place once the country regains control of monetary and fiscal matters, rather than on abandoning the old exchange system as such. It all depends on how a country stays in the eurozone, or on how it leaves if need be. |
| Keywords: | Currency Crisis; Devaluation; Employment; Euro Exit; Eurozone; Growth; Income |
| JEL: | F16 F31 F33 G01 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_840&r=pke |
| By: | Thomas I. Palley |
| Abstract: | This paper examines the major competing interpretations of the economic crisis in the US and explains the rebound of neoliberal orthodoxy. It shows how US policymakers acted to stabilize and save the economy, but failed to change the underlying neoliberal economic policy model. That failure explains the emergence of stagnation, which is likely to endure. Current economic conditions in the US smack of the mid-1990s. The 1990s expansion proved unsustainable and so will the current modest expansion. However, this time it is unlikely to be followed by financial crisis because of the balance sheet cleaning that took place during the last crisis. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:imk:wpaper:154-2015&r=pke |
| By: | Anderaos de Araujo, Fabio |
| Abstract: | An analysis of the invariable measure of prices proposed by the eminent Italian economist Piero Sraffa, who laid the foundations for a new approach in modern economics. Two mathematical appendices are also provided. The first one shows step by step the construction of the Standard Commodity, which is a consistent solution to the transformation of labour values into prices of production. In Appendix II there is a general numerical example of a price system with two industries which makes the understanding of the distribution of income between wages and profits easier. Using a software spreadsheet, for example, it is possible to make numerical simulations and make comparisons between the results obtained from the Sraffa price system with that obtained from Marx's. This is revised version of the original paper written few years ago. |
| Keywords: | Sraffa, labour theory of value, Standard Commodity |
| JEL: | A10 |
| Date: | 2015–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65426&r=pke |
| By: | Gianluca Benigno; Luca Fornaro |
| Abstract: | We provide a Keynesian growth theory in which pessimistic expectations can lead to permanent, or very persistent, slumps characterized by unemployment and weak growth. We refer to these episodes as stagnation traps, because they consist in the joint occurrence of a liquidity and a growth trap. In a stagnation trap, the central bank is unable to restore full employment because weak growth pushes the interest rate against the zero lower bound, while growth is weak because low aggregate demand results in low profits, limiting firms’ investment in innovation. Policies aiming at restoring growth can successfully lead the economy out of a stagnation trap, thus rationalizing the notion of job creating growth. |
| Keywords: | secular stagnation, liquidity traps, growth traps, endogenous growth, sunspots |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:832&r=pke |
| By: | Franck, Raphaël (Bar-Ilan University); Galor, Oded (Brown University) |
| Abstract: | This research explores the long-run effect of industrialization on the process of development. In contrast to conventional wisdom that views industrial development as a catalyst for economic growth, the study establishes that while the adoption of industrial technology was conducive to economic development in the short-run, it has had a detrimental effect on standards of living in the long-run. Exploiting exogenous source of regional variation in the adoption of steam engines during the French industrial revolution, the research establishes that regions in which industrialization was more intensive experienced an increase in literacy rates more swiftly and generated higher income per capita in the subsequent decades. Nevertheless, intensive industrialization has had an adverse effect on income per capita, employment and equality by the turn of the 21st century. This adverse effect reflects neither higher unionization and wage rates nor trade protection, but rather underinvestment in human capital and lower employment in skilled-intensive occupations. These findings suggest that the characteristics that permitted the onset of industrialization, rather than the adoption of industrial technology per se, have been the source of prosperity among the currently developed economies that experienced an early industrialization. |
| Keywords: | economic growth, industrialization, steam engine |
| JEL: | N33 N34 O14 O33 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9158&r=pke |
| By: | Picazo, Oscar F. |
| Abstract: | This paper briefly reviews the literature on the emerging concept of eco-adventure and cultural tourism, dubbed "green and gold tourism," respectively. It provides the rationale for conducting such a study in the Philippines (why the concern for inclusivity and environmental sustainability in tourism). It then establishes the feasible scope of such study and lists illustrative activities of inclusive and sustainable green and gold tourism. It also identifies concerns and issues about green and gold tourism in APEC countries and in the Philippines. Finally, it classifies emerging good practices in this area, including volunteer travel, promotion of home stays, community-organized and -owned tourism activities, establishing nonmainstream tourist routes and destinations, and tourists' involvement in cultural preservation and eco-rehabilitation. |
| Keywords: | Philippines, eco-adventure tourism, cultural tourism, green tourism, gold tourism, inclusive tourism, sustainable tourism, nontraditional tourism |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2015-33&r=pke |