nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2021‒04‒19
seven papers chosen by
Karl Petrick
Western New England University

  1. Marx's Equalized Rate of Exploitation By Jonathan F. Cogliano
  2. History as heresy: unlearning the lessons of economic orthodoxy By O'Sullivan, Mary
  3. "The Souk Al-Manakh: The Anatomy of a Pure Price-Chasing Bubble" By Frank Veneroso; Mark Pasquali
  4. The Triple Day Thesis: Theorizing Motherhood within Marxist Economic Theory and Marxist Feminist Social Reproduction Theory By Elaine Agyemang Tontoh
  5. The Struggle with Inequality By Shin-Ichiro Inaba
  6. COVID-19 and the Impact on Debt: Policy Implications By Thouraya Bahri; Aditya Singh
  7. Covid-19 and interweaving of crises: Restoring Keynesianism in order to rebuild macroeconomic policy By Sébastien Charles; Thomas Dallery; Jonathan Marie

  1. By: Jonathan F. Cogliano
    Abstract: Marx assumes a uniform rate of exploitation throughout Capital, yet the theoretical basis for this assumption and its role in his theory of value are not well understood in the existing literature. This paper shows that Marx assumed a tendentially equalized rate of exploitation to be the outcome of labor mobility, and that he viewed this as a general tendency of capitalist economies. Marx draws extensively on Adam Smith to support his views on labor mobility and the equalized rate of exploitation. The close connection between Smith and Marx on notions of labor mobility is examined here. Understanding the role of labor mobility and the equalized rate of exploitation in Marx’s work holds implications for contemporary approaches to classical-Marxian price and value theory and supports the view that Marx’s theory of value is, in the most general sense, a theory of the allocation of social labor.
    Keywords: Adam Smith; Karl Marx; Labor Mobility; Long-Period Method; Rate of Exploitation.
    JEL: B14 B24 B51 C67 D46 D51
    Date: 2021–04
  2. By: O'Sullivan, Mary
    Abstract: In spring 2020, in the face of the covid-19 pandemic, central bankers in rich countries made unprecedented liquidity injections to stave off an economic crisis. Such radical action by central banks gained legitimacy during the 2008-2009 global financial crisis and enjoys strong support from prominent economists and economic historians. Their certainty reflects a remarkable agreement on a specific interpretation of the Great Depression of the 1930s in the United States, an interpretation developed by Milton Friedman and Anna Schwartz in A Monetary History of the United States (1963). In this article, I explore the origins, the influence and the limits of A Monetary History’s interpretation for the insights it offers on the relationship between theory and history in the study of economic life. I show how historical research has been mobilised to show the value of heretical ideas in order to challenge economic orthodoxies. Friedman and Schwartz understood the heretical potential of historical research and exploited it in A Monetary History to question dominant interpretations of the Great Depression in their time. Now that their interpretation has become our orthodoxy, I show how we can develop the fertile link between history and heresy to better understand our economic past.
    JEL: N0 N1 N2 B3 B4 B5
    Date: 2021
  3. By: Frank Veneroso; Mark Pasquali
    Abstract: It is widely agreed that the Nasdaq during the dot-com era 20 years ago was a full-fledged stock market bubble. Recently, the US stock market according to many metrics has become significantly more speculative and overvalued than it was at the dot-com peak 20 years ago. In both instances, a very broad subset of stocks became so highly valued that speculation in them had to be untethered from all fundamentals: the essence of what we call a "pure price-chasing bubble." This paper, drawn from a book in progress, examines the history of stock markets for comparable pure price-chasing bubbles, finding nine or so which have ever reached such a speculative extreme, with an over-the-counter market in Kuwait in the early 1980s called the "Souk al-Manakh" representing the most extreme example. Based on personal exposure to this Souk al-Manakh almost 40 years ago, we describe this anatomy and thereby make transparent the recurrent dynamics--on the way up and on the way down--of these greatest asset bubbles in human history. When one applies this framework to the current US stock market, one sees that the stock market in the US today will likely follow the disastrous path of the dot-com market.
    Keywords: John Maynard Keynes; Business Cycle; Fiscal Policy; Monetary Policy; Financial System; Uncertainty
    JEL: B31 E12 E32 E44 E63
    Date: 2021–03
  4. By: Elaine Agyemang Tontoh (Department of Economics, New School for Social Research)
    Abstract: The paper develops a theory of maternal economic oppression within capitalist society using Marxist theory and Marxist feminist social reproduction theory to address the triple day problem- the inability of a mother to engage in self-reproduction. Maternal economic oppression is conceptualized as the exploitation of motherhood labor - the socially necessary non-wage labor of childbearing and childrearing - through zero-compensation. Subsequently, the paper develops the single-double-triple-day (SDTD) argument of maternal economic oppression to make the case for motherhood compensation to resolve the triple day problem. The SDTD argument stipulates that as a mother’s work transitions from a single day to a double day, the tendency exists for the oppression of mothers to evolve into complex levels of destruction which triggers a critical need for mothers to engage in the triple day of self-reproduction with the evolution triggered primarily by the non-payment of monetary compensation for reproductive work. The paper finally makes the case for motherhood compensation to be paid during a child’s age of reproductive dependence rather than the age of reproductive independence if it is to be effective.
    Keywords: Triple day, maternal economic oppression, Marxist feminism, human essence, motherhood compensation, single-double-triple-day (SDTD) argument, material justice
    JEL: B51 B54 B55 D13 D63 J13 J16
    Date: 2021–04
  5. By: Shin-Ichiro Inaba
    Abstract: This is an introductory textbook of the history of economics of inequality for undergraduates and genreral readers. The first and second chapters focus on Adam Smith and Karl Marx, in the broad classical tradition of economics, where it is believed that there is an inseparable relationship between production and distribution, economic growth and inequality. Chapters 3 and 4 argue that despite the fact that the founders of the neoclassical school had shown an active interest in worker poverty, the issues of production and distribution became discussed separately among neoclassicals. Toward the end of the 20th century, however, there was a renewed awareness within economics of the problem of the relationship between production and distribution. The young Piketty's beginnings as an economist are set against this backdrop. Chapters 5 to 8 will explain the circumstances of the restoration of classical concerns within the neoclassical framework. Then, in chapters 9 and 10, I will discuss the fact that Thomas Piketty's seminal work is a new development in this "inequality renaissance," and try to gain a perspective on future trends in the debate. Mathematical appendix presents simple models of growth and distribution.
    Date: 2021–04
  6. By: Thouraya Bahri (Department of Economics, New School for Social Research); Aditya Singh (Department of Economics, New School for Social Research)
    Abstract: Given the outbreak of COVID-19, the economic crisis that has unfurled globally is a matter of grave concern. This paper — by using a survival analysis model — argues that countries that are suffering through debt would fall into a recessionary spiral if their debt obligations are not restructured or alleviated to incorporate the unprecedented impacts of the pandemic. We provide examples of cases where such restructuring has worked. We argue not to revert to the norm of incurring further debt to pay-off older debt. Rather, the case is made to use deficit spending to mitigate the economic crisis and also prepare governments for potential climate disasters by funding green fiscal policy.
    Keywords: Economic growth, COVID-19 pandemic, debt, pandemic, fiscal policy
    JEL: O11 O21 O23 O44
    Date: 2021–04
  7. By: Sébastien Charles; Thomas Dallery; Jonathan Marie (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)
    Abstract: La pandémie mondiale provoque une crise économique sans précédent aux conséquences sociales dévastatrices, tout en remettant en perspective la crise écologique. L'imbrication de ces crises impose que l'articulation des politiques macroéconomiques soit revue ; la politique budgétaire doit devenir l'outil privilégié de la politique économique comme le recommandent les post-keynésiens au contraire des tenants du nouveau consensus en macroéconomie. La politique monétaire doit appuyer la politique budgétaire, pendant que des mesures comme la baisse du temps de travail doivent être adoptées. Cette réarticulation de la politique économique est nécessaire afin de limiter les conséquences économiques négatives de la crise de la covid-19, mais aussi à plus long terme pour permettre le plein-emploi, enclencher véritablement la transition écologique et réduire la vulnérabilité des économies aux chocs globaux.
    Keywords: politique économique,nouveau consensus,post-keynésianisme
    Date: 2021–02–10

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