nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2021‒05‒03
four papers chosen by
Karl Petrick
Western New England University

  1. Life among the Econ: fifty years on By Thomas Palley
  2. The Normal Degree of Capacity Utilization: The History of a Controversial Concept By Trezzini, Attilio; Pignalosa, Daria
  3. The triple day thesis : A policy conversation on the Marxist feminist-capability theory of motherhood and the 2021 Family Security Act proposal By Elaine Agyemang Tontoh
  4. A game-theoretic analysis of fiscal policy under economic growth from the perspective of MMT By Tanaka, Yasuhito

  1. By: Thomas Palley (Economics for Democratic and Open Societies (US))
    Abstract: Almost fifty years ago, the Swedish econographer Axel Leijonhufvud (1973) wrote a seminal study on the Econ tribe titled “Life among the Econ”. This study revisits the Econ and reports on their current state. Life has gotten more complicated since those bygone days. The cult of math modl-ing has spread far and wide, so that even lay Econs practice it. Fifty years ago the Econ used to say “Modl-ing is everything”. Now they say “Modl-ing is the only thing”. The math priesthood has been joined by a priesthood of economagicians. The fundamental social divide between Micro and Macro sub-tribes persists, but it has been diluted by a new doctrine of micro foundations. The Econ remain a fractious and argumentative tribe.
    Keywords: Micro, macro, economagicians, Keynesians, New Classicals, New Keynesians
    JEL: A10 B00 B20 Z00 Z10
    Date: 2021–04
  2. By: Trezzini, Attilio (Roma Tre University); Pignalosa, Daria (Roma Tre University)
    Abstract: The determination of the normal degree of capacity utilization has been addressed in the analysis of radically different problems and with different theoretical approaches. By going back over the history of these analyses, the paper highlights the main findings that have emerged from the early literature on the subject and identifies some generally shared principles on the one hand and different methodological positions on the other. Finally, attention is drawn to some issues that seem susceptible to further investigation.
    Keywords: capacity utilization; choice of technique; demand-led growth; competition
    JEL: B51 D21
    Date: 2021–04
  3. By: Elaine Agyemang Tontoh (Department of Economics, New School for Social Research)
    Abstract: The triple day thesis which is conceptualized within an integrated Marxist feminist-capability framework centers on promoting maternal aspirations and capabilities, maternal self-reproduction, and motherhood compensation. A triple day mother is a woman who engages in the reproductive work of childbearing and childrearing (the single day), in addition to waged work if she is employed ( the double day), but is also able to engage in self-reproductive work (the triple day). The inability of mothers to undertake self-reproductive activities describes the triple day problem. This paper highlights the synergies between the proposed Family Security Act and the Marxist-feminist-capability theoretic framework for the study of the triple day. It makes the case that any family policy proposal to create incentives for childbearing and childrearing should not be discussed separately from a motherhood policy proposal to promote maternal capabilities and maternal self-reproduction among the women who engage daily in those biological and social reproduction processes. The paper concludes by discussing why the proposed Family Security Act may be necessary but not sufficient to resolve the problem of the triple day.
    Keywords: Triple day problem, Family Security Act, maternal self-reproduction, motherhood compensation, Marxist feminism, capabilities approach, family policy
    JEL: B51 B54 J13 J18 I38
    Date: 2021–04
  4. By: Tanaka, Yasuhito
    Abstract: We present a game-theoretic analysis of fiscal policy under economic growth from the perspective of MMT using a simple two-periods overlapping generations (OLG) model. We show the following results. 1) Sustained budget deficits are necessary to maintain full-employment under economic growth driven by technological progress. 2) An excessive budget deficit triggers inflation, and after one period inflation full-employment is maintained by sustained budget deficits with constant price. 3) Insufficient government deficit causes involuntary unemployment, and we need extra budget deficit over its steady state value to recover full-employment. These budget deficits need not be, and must not be redeemed. Therefore, if it is institutionally and legally possible, they should be financed by seigniorage not by public debt.
    Keywords: Overlapping generations model, Full-employment, Budget deficit, Growth, MMT
    JEL: E12 E24
    Date: 2021–04–25

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