nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2022‒11‒21
six papers chosen by
Karl Petrick
Western New England University

  1. Financialisation and the potentials for a progressive equality-, sustainability- and domestic demand-led regime: A post-Keynesian simulation approach By Hein, Eckhard; Prante, Franz; Bramucci, Alessandro
  2. Classical and Keynesian Models of Inequality and Stagnation By Codrina Rada; Daniele Tavani; Rudiger von Arnim; Luca Zamparelli
  3. Political economy of growth regimes in Poland and Turkey By Akcay, Ümit; Jungmann, Benjamin
  4. Tyranny, Blind Spot in the Humanities By Andreu Solé
  5. The New Speak and Economic Theory or How We Are Being Talked To By Jean-Paul Fitoussi
  6. Constructivist Grounded Theory: A New Research Approach in Social Science By Mohajan, Devajit; Mohajan, Haradhan

  1. By: Hein, Eckhard; Prante, Franz; Bramucci, Alessandro
    Abstract: In several publications, starting more than a decade ago, Peter Flaschel and co-authors have outlined the features of a 'social capitalism' as a normative alternative to the liberal and financialised capitalism of the Anglo-Saxon type, but also to the undemocratic Chinese-type of state capitalism. Theoretically and analytically, this concept has been built on a MarxKeynes/Kalecki-Schumpeter approach to macroeconomics. Our approach in this paper, based on post-Keynesian/Kaleckian foundations and making use of a two-country stock-flow consistent (SFC) simulation model, shares with Flaschel and co-authors the search for an alternative to the liberal finance-dominated capitalism which has dominated, to different degrees in different countries, since the late 1970s/early 1980s and led to the 2007-09 crises. On the one hand, our approach is narrower than the one by Flaschel and co-authors, since we are explicitly in our model only focusing on demand and growth regimes, as well as on macroeconomic policy regimes, but only implicitly on innovations and structural change. On the other hand, however, we shed light on different regimes in modern capitalism, their interaction at the global scale, and then on the changes in regimes after the 2007-09 crises. Finally, we present the main features of a progressive and more stable equality-, sustainability- and domestic demand-led regime. We believe that such a progressive regime is in the spirit of Flaschel and co-authors' concept of 'social capitalism', but we also point out some disagreements regarding the underlying model and the core policies.
    Keywords: post-Keynesian macroeconomics,financialisation,growth regimes,inequality,debt,social capitalism,stock-flow consistent model
    JEL: B59 E02 E11 E12 E25 E65 F41 O41
    Date: 2022
  2. By: Codrina Rada; Daniele Tavani; Rudiger von Arnim; Luca Zamparelli
    Abstract: This paper studies two formal models of long run growth with a medium-run distributive cycle, both of which feature causal links from the rise in inequality to a deterioration of long run macroeconomic performance. Both versions feature an endogenous income-capital ratio: one through the Keynesian notion of effective demand, the other building on induced bias in technical change. A key focus of the analysis is on the assumptions necessary in both frameworks to generate policy implications consistent with the observed decline of the labor share, the income-capital ratio, and labor productivity growth during the neoliberal era. Importantly, both theories: (a) provide space for mutually reinforcing pro-labor and pro-growth policies in the long run, although they differ in the mechanisms at play in these processes; (b) imply a potential tradeoff between pro-labor policies and growth on one hand, and long-run employment on the other; (c) are consistent with the evidence on the distributive cycle at business cycle frequency.
    Keywords: Distributive cycle, induced technical change, labor share, stagnation
    JEL: E11 E12 E25 E32 O33 O41
    Date: 2022–11
  3. By: Akcay, Ümit; Jungmann, Benjamin
    Abstract: In this paper, we aim to contribute to the recently growing body of political economy literature on growth regimes. Theoretically, we apply the demand and growth regime approach developed within post-Keynesian macroeconomics. This is complemented by a critical comparative political economy perspective to analyse the socio-political underpinnings of a demand and growth regime by using the concept of dominant social blocs and their growth strategies. We posit that the concept of growth strategy is useful to uncover the intention of a dominant social bloc to consolidate or change the current demand and growth regime. Using this framework, we examine the demand and growth regimes of Poland and Turkey from 1999 to 2020. We identify a domestic demand-led regime in Poland between 1999 and 2008, which transitioned to a weakly export-led regime between 2009 and 2020. In Turkey, we identify a domestic demand-led regime before the Global Financial Crisis (GFC) that became a private debt-led regime until the taper tantrum in 2013. Since then, a development towards a more export-led regime is observable, albeit at lower and unstable growth levels. We argue that in both countries the trend toward a more export-led regime after the GFC is associated to changes in the dominant social blocs. Both of the new dominant social blocs that established themselves during the 2010s - represented by the PiS-party in Poland and the AKP in Turkey - pursue a growth strategy toward "national capitalism". Politically, these strategies have come with a democratic backlash. Economically, they aim to gain more control over key sectors such as banking and finance while developing a more competitive export sector through domestic re-industrialisation initiatives.
    Keywords: Post-Keynesian macroeconomics,comparative political economy,growth regimes,growth strategies,Poland,Turkey
    JEL: B52 E65 E66 F43 O43 P16 P52
    Date: 2022
  4. By: Andreu Solé (HEC Paris - Ecole des Hautes Etudes Commerciales)
    Abstract: What is the singularity of our society and, consequently, how to name it? We first present a critique of three terms: liberalism, capitalism and "neo-liberalism" which are associated with this society by many researchers in the humanities and social sciences. We show that the classical, non-authoritarian liberalism of Adam Smith is a utopia. As for the word capitalism, it spreads a major confusion, that between market and company. Concerning the "neo-liberalism" of Hayek and Friedman, we argue that it is not liberalism. Then, we underline that our society is organized by and for companies, allowing us to formulate the proposal to call it "Enterprise-World". Finally, we highlight the tyranny - linked to the company - specific to this society, and invite us to wonder why most researchers in the humanities seem not to "see" it.
    Abstract: Quelle est la singularité de notre société et, en conséquence, comment la nommer ? Nous exposons d'abord une critique de trois termes : « libéralisme », « capitalisme » et « néolibéralisme » qui sont associés à cette société par beaucoup de chercheurs en sciences humaines. Nous démontrons que le libéralisme classique, non autoritaire, d'Adam Smith est une utopie. Quant au mot capitalisme, il diffuse une confusion majeure, celle entre marché et entreprise. S'agissant du « néolibéralisme » de Hayek et Friedman, nous faisons ressortir qu'il n'est pas du libéralisme. Ensuite, nous soulignons que notre société est organisée par et pour les entreprises, nous permettant de formuler la proposition de l'appeler « Entreprise-Monde ». Enfin, nous mettons en lumière la tyrannie-liée à l'entreprise-, spécifique de cette société, et invitons à se demander pourquoi la plupart des chercheurs en sciences humaines semblent ne pas la « voir ».
    Keywords: Liberalism,Neoliberalism,Capitalism,Company,Tyranny,Tyrannie,Libéralisme,Néolibéralisme,Capitalisme,Entreprise
    Date: 2022–07–20
  5. By: Jean-Paul Fitoussi (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, LUISS - Libera Università Internazionale degli Studi Sociali Guido Carli [Roma])
    Abstract: This article seeks to show how the impoverishment of language has changed the course of the evolution of economic theory, much as in 1984 the Newspeak changed the order of things and the course of the political regime. At the origin of such an evolution was the stratagem to act as if neoclassical theory was subsequent to Keynesian theory. The inversion of the time arrow had far reaching consequences on the development of economics. In great part the development of a science depends of the scholars who practice it and of its teaching to the new researchers who will further develop it. Both depend on the history of thought. The consequences on economic policies have been major, especially in Europe. By cancelling most of the Keynesian concepts from the Newspeak dictionary, the relative weights of the market and the state were changed, which could only lead to a preference for liberal, market- oriented, policies.
    Date: 2022
  6. By: Mohajan, Devajit; Mohajan, Haradhan
    Abstract: This article tries to explore the constructivist grounded theory (CGT) in qualitative research. American sociologist Kathy Charmaz has developed a new qualitative research field “Constructivist Grounded Theory” for the first time in 2006. Constructivist grounded theory is a qualitative research methodology that draws comparison between the ethical principles of deontology, utilitarian and virtue ethics, and individuals seek to understand the world in which they live and work. It is a popular method for research studies mainly in psychology, education, and nursing. In social sciences, it represents culture, context, literacy, personal experiences, as well as application of knowledge. It also presents the theoretical substructures of symbolic interactionism and constructivism. Constructivism is used for research, learning, and teaching with peers. There are various types of constructivism, such as social, psychological, personal, radical, and contextual constructivism. On the other hand, symbolic interactionism is the process of human interaction that provides the meanings for the experiences through language, symbols, and social interactions. This study tries to investigate how constructivist grounded theory has developed in times from the original grounded theory of Glaser and Strauss. The paper also tries to highlight characteristics, application, and importance of constructivist grounded theory.
    Keywords: Constructivist grounded theory, Charmaz, knowledge, social science
    JEL: A2 B54 D6 I25
    Date: 2022–07–19

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