nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2022‒12‒19
four papers chosen by
Karl Petrick
Western New England University

  1. A Keynesian-Minskian perspective on the transformation of industrial into financial capitalism By Heise, Arne
  2. Inequality, Debt Dynamics and the Incidence of Tax Rates: Addressing Macroeconomic Instability in a Post Keynesian Model By Clara Zanon Brenck
  3. Financialisation, varieties of macroeconomic regimes and stagnation tendencies in a stylised Kaleckian model By Hein, Eckhard
  4. Beyond the Green New Deal? Dependency, racial capitalism and struggles for a radical ecological transition in Argentina and Latin America By Féliz, Mariano; Melón, Daiana Elisa

  1. By: Heise, Arne
    Abstract: The capitalism John Maynard Keynes struggled to analyse was clearly an industrial capitalism in which the investor used physical capital only to end up with more money than he started with. It is particularly the post Keynesian school of 'monetary or fundamentalist Keynesianism' which elaborated Keynes's monetary theory of production into an alternative economic paradigm that replaces the exchange ontology with an ontology based on nominal obligations. As economic history reports a higher speed of financial than real asset accumulation over the past half a century - a process often dubbed "financialisation" -, doubts have been raised as to whether this transformation of industrial capitalism into financialised capitalism demands for a new macroeconomic approach.
    Keywords: John Maynard Keynes,Hyman P. Minsky,monetary production economy,industrialcapitalism,financial capitalism,Financial Instability Hypothesis
    Date: 2022
  2. By: Clara Zanon Brenck (Department of Economics, New School for Social Research)
    Abstract: This paper explores different tax regimes in a Post-Keynesian model where workers get into debt to emulate the consumption of upper-income classes. The government taxes income to fund a social wage that would reduce workers’ need to get into debt. Three tax regimes are analyzed: taxing profits, managers’ wages, or both. In a numerical exercise, we explore the effects of changing the within-wage and functional inequalities. The government’s income tax choices and the distribution of the wage bill matter for the sustainability of the economy and for the relation between distribution and growth. Taxing only profits and reducing wage inequality is the best possible outcome if we were to wind down the unsustainability feature of Neoliberalism without sacrificing real performance.
    Keywords: Inequality, debt dynamics, tax regime, sustainable growth
    JEL: D31 E12 O41
    Date: 2022–11
  3. By: Hein, Eckhard
    Abstract: In this contribution, we review the research on the variety of macroeconomic demand and growth regimes in finance-dominated capitalism, on the regime shifts in the course of and after the 2007-09 crises, the drivers of these shifts and on the emerging stagnation tendencies. Results of this research are integrated into a stylised Kaleckian distribution and growth model, which allows to derive the pre-crisis regimes and the following regime shifts. By means of endogenising productivity growth into that model, we also show that post-crises stagnation tendencies and falling potential growth can be explained by those financialisation features generating low capital stock growth, i.e. depressed animal spirits of management of nonfinancial corporations, high propensities to save out of the different types of income after the crises, low government expenditure and deficit rates, in particular in the export-led mercantilist countries, and high profit shares. The latter has an independent depressing effect on innovation activities of firms and on productivity growth, too, which is also negatively affected by falling government expenditures on R&D and education.
    Keywords: Financialisation,macroeconomic regimes,regime shifts,stagnation,Kaleckian model
    JEL: E02 E60 E61 F62 G38
    Date: 2022
  4. By: Féliz, Mariano; Melón, Daiana Elisa
    Abstract: The article is structured as follows. After this brief introduction, we present our analytical framework, providing a succinct discussion on marxian dependency and racial capitalism as key elements of our analysis. Then we engage in a critical dissection of the green developmentalist initiatives to tackle climate change from Argentina. Afterwards, we discuss the strengths and limitations of the Pact, and later on we present some of the main ideas being stressed by radical eco-social collectives and organisations in Argentina. We finish our work with some brief reflections.
    Date: 2022–11–17

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