nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2023‒01‒23
nine papers chosen by
Karl Petrick
Western New England University

  1. Growth regimes of populist governments: A comparative study on Hungary and Poland By Kühnast, Julia
  2. From one crisis to another: the new interdependencies between the state and global finance. By Rafaël Cos; Sarah Kolopp; Ulrike Lepont; Caroline Vincensini
  3. The world system’s mutational crisis and the emergence of the new globalization By Chatzinikolaou, Dimos; Vlados, Charis
  4. The New Speak and Economic Theory or How We Are Being Talked To By Jean-Paul Fitoussi
  5. The renaissance of ordoliberalism in the 1970s and 1980s By Krieger, Tim; Nientiedt, Daniel
  6. Institutional theory of financial inclusion By Ozili, Peterson K
  7. Why is economics the only discipline with so many curves going up and down? And are they of any use? By Giovanni Dosi
  8. Achieving financial inclusion: whatever it takes By Ozili, Peterson K
  9. Monetary Policy and Racial Inequality By Alina K Bartscher; Moritz Kuhn; Moritz Schularick; Paul Wachtel

  1. By: Kühnast, Julia
    Abstract: This paper aims to contribute to the debate of post-Keynesian growth models and Comparative Political Economy (CPE) by investigating the relationship between the changes in demand and growth regimes and the establishment of right-wing populist governments in Poland and Hungary after the Global Financial Crisis (GFC). In both countries, these parties established a system that lays a stronger focus on economic nationalism and the role of the state to reduce foreign influence. Both economies are currently in a transition phase in which their old, neoliberal regimes are slowly changing, but they have not yet completely abandoned neoliberalism. In both countries, post-GFC economic policies have led to changes in the growth regimes and increased the importance of the export sector. It was mainly the demands of domestic capitalists that constituted the social base for these changes.
    Keywords: Growth regimes, Populism, Comparative Political Economics
    JEL: E12 E65 F40 F43 G01 O57
    Date: 2022
  2. By: Rafaël Cos (UB - Université de Bordeaux); Sarah Kolopp (CESSP - Centre européen de sociologie et de science politique - UP1 - Université Paris 1 Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Ulrike Lepont (CEE - Centre d'études européennes et de politique comparée (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Caroline Vincensini (IDHES - Institutions et Dynamiques Historiques de l'Économie et de la Société - UP1 - Université Paris 1 Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - UEVE - Université d'Évry-Val-d'Essonne - CNRS - Centre National de la Recherche Scientifique - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay)
    Abstract: More than ten years after the crisis of 2008, the role of finance questions: how is it now at the center of public policies when, only a short time ago, it was accused of being the cause of the most serious economic crisis since the 1929 crash? How did finance go from being a "problem" to be solved to being a solution to govern crises? How has the relationship between governments and finance shifted since 2008? And to what extent do they contribute to the recomposition of political and social orders? In this interview, we present three perspectives on this new age of financialization - from heterodox political economy (Daniela Gabor), to neo-institutionalist sociology (Wolfgang Streeck) and to critical sociology (Frédéric Lebaron). Daniela Gabor proposes the notion of "derisking state" to think about the new techniques by which the state has opened up new areas of the society to finance since 2008, transforming these areas into asset classes and reducing the risk for investors. Wolfgang Streeck insists on the transformations of the consolidation state, in which markets function as a tool for disciplining public spending, while their stability depends on state debt. Finally, Frédéric Lebaron shows that these new interdependencies between states and private investors cannot be understood without analyzing the specific dynamics through which central banks establish themselves within the fields of power. In doing so, we offer a range of tools to interpret the political and social transformations that are taking place today in the rearrangement between states, central banks and finance.
    Abstract: Un peu plus de dix ans après la crise de 2008, cette place de la finance interroge : comment cette dernière se retrouve-t-elle aujourd'hui au cœur des dispositifs d'action publique quand, il y a encore si peu de temps, elle était mise au banc des accusés pour avoir été à l'origine de la plus grave crise économique observée depuis le krach de 1929 ? Comment la finance est-elle passée du statut de « problème » à résoudre à celui de solution pour gouverner les crises ? Dès lors, comment les rapports entre les États et la finance se sont-ils déplacés depuis 2008 ? Et dans quelle mesure contribuent-ils à recomposer les ordres politiques et sociaux ? Dans cet entretien croisé, nous présentons trois éclairages sur ce nouvel âge de la financiarisation – celui de l'économie politique hétérodoxe (Daniela Gabor), celui de la sociologie néo-institutionnaliste (Wolfgang Streeck) et celui de la sociologie critique (Frédéric Lebaron). Daniela Gabor propose la notion de « derisking state » pour penser les techniques inédites par lesquelles l'État ouvre, depuis 2008, de nouveaux espaces de la vie sociale à la finance, en transformant ces espaces en classes d'actifs, et en réduisant le risque pour les investisseurs. Wolfgang Streeck insiste sur les transformations du consolidation state, dans lequel les marchés fonctionnent comme un outil de disciplinarisation de la dépense publique, tandis que leur stabilité dépend elle-même de la dette des États. Enfin, Frédéric Lebaron montre que ces nouvelles interdépendances entre États et investisseurs privés ne peuvent se comprendre sans analyser la dynamique singulière par laquelle les banques centrales s'affirment au sein des champs du pouvoir. Ce faisant, nous offrons une palette d'outils pour déchiffrer les transformations politiques et sociales qui se jouent aujourd'hui dans les réassemblages entre les États, les banques centrales et la finance.
    Keywords: Finance, Economic policies, 2008 crisis, derisking state, consolidation state, politiques économiques, crise de 2008
    Date: 2022–01–17
  3. By: Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics); Vlados, Charis (Democritus University of Thrace, Department of Economics)
    Abstract: This presentation examines the evolution of world capitalism after World War II by proposing a framework for understanding the emerging new globalization. It initially distinguishes the four development phases from 1945 to date and then presents converging theorizations of the new globalization. This critical review concludes that the previous regime has structurally matured, giving way to a framework characterized by increased instability and expected consequential crises in socioeconomic terms. A new perception of regionalization also shows that it shifts the existing regime of world development.
    Keywords: new globalization; economic development; economic crisis; new regionalization; innovation
    JEL: F60 F63 F69
    Date: 2022–09–09
  4. 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
  5. By: Krieger, Tim; Nientiedt, Daniel
    Abstract: The economic tradition of ordoliberalism, understood as the theoretical and policy ideas of the Freiburg School, emerged in 1930s and 1940s Germany. In the years thereafter, it was quickly superseded by Keynesianism and other theories imported from the English-speaking world. The crisis in Keynesian economics in the mid-1970s led to what has been described as a "renaissance of ordoliberal reasoning" (Gebhard Kirchgässner) during the late 1970s and the 1980s. The present paper describes this development in detail and shows how it affected the academic discourse and, more indirectly, policymaking. In academic economics, ordoliberal concepts were used to inform debates about pressing issues of the day such as unemployment, social security reform, competition policy, the provision of public goods, and European integration. There was, however, no consensus on the methodological question of whether ordoliberalism could be fully integrated into international research programs such as the new institutional economics or constitutional economics. The paper argues that the renaissance of ordoliberalism failed to have a lasting impact on German academic economics and discusses possible implications of this finding for the future of the ordoliberal research agenda.
    Keywords: Ordoliberalism, Freiburg school, Economic policy, Social market economy, Keynesianism, European integration
    JEL: B29 D4 E6 H6 P16
    Date: 2022
  6. By: Ozili, Peterson K
    Abstract: This article advocates a new addition to the theories of financial inclusion which is the institutional theory of financial inclusion. The case for a new theory arises from the role of institutions or non-market structures in influencing the level of financial inclusion. Postulating an institutional theory of financial inclusion is important due to the need to understand financial inclusion from the context of institutions and non-market structures that people have a great deal of trust in. The institutional theory of financial inclusion has the capacity to generate a wide range of testable hypotheses, and can provide the social scientist with tools that are relevant for understanding the broad spectrum of financial inclusion in society.
    Keywords: financial inclusion, institutions, institutional theory, access to finance, non-market structure, culture, unbanked adults, financial exclusion.
    JEL: G21 I31 P37
    Date: 2023
  7. By: Giovanni Dosi
    Abstract: Even the most rudimentary training from Economics 101 starts with demand curves going down and supply curves going up. They are so 'natural' that they sound even more obvious than the Euclidian postulates in mathematics. But are they? What do they actually mean? Start with ''demand curves''. Are they hypothetical 'psychological constructs' on individual preferences? Propositions on aggregation over them? Reduced forms of actual dynamic proposition of time profiles of prices and demanded quantities? Similar considerations apply to ''supply curves'' The point here, drawing upon the chapter by Kirman and Dosi, in Dosi (2023), is that the forest of demand and supply curves is basically there to populate the analysis with double axiomatic notions of equilibria, both 'in the head' of individual agents, and in environments in which they operate. And the issue is even thornier when dealing with ''curves'' going up and down in macroeconomic contexts where one is basically talking of a mystical construction of a meta meta meta loci of equilibrium - first, in the head of each agent, next, in each market (for goods, for savings, etc.), finally in the overall economy. Supply and demand ''curves'', I am arguing, are one of the three major methodological stumbling blocks on the way of progress in economics - the others being 'utility functions' and 'production functions' -. There is an alternative: represent markets and industries how they actually works, and model them both via fully fledged Agent Based Models and via lower dimensional dynamical systems.
    Keywords: Demand and supply curves; aggregation; costs and prices; dynamical systems.
    Date: 2023–01–07
  8. By: Ozili, Peterson K
    Abstract: This paper presents some policy ideas on how to achieve high levels of financial inclusion. It explores a number of policy options that can be used to achieve greater levels of financial inclusion. The paper argues that high levels of financial inclusion can be achieved by reducing interest rate; introducing conditional low interest rate; supporting monetary policies with welfare payments; reducing taxes; using targeted government spending; supporting fiscal policies with tax rebate, tax holiday or tax exemption; grant tax rebate to financial institutions; financial inclusion-environment decoupling; and de-risking the financial system.
    Keywords: financial inclusion, unbanked adults, interest rate, monetary policy, fiscal policies, environment, financial system, financial institutions, digital finance, tax.
    JEL: G21 G28
    Date: 2022
  9. By: Alina K Bartscher (Danmarks Nationalbank); Moritz Kuhn (University of Bonn, CEPR - Center for Economic Policy Research - CEPR, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Moritz Schularick (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, University of Bonn, CEPR - Center for Economic Policy Research - CEPR); Paul Wachtel (NYU - NYU System)
    Abstract: This paper aims at an improved understanding of the relationship between monetary policy and racial inequality. We investigate the distributional effects of monetary policy in a unified framework, linking monetary policy shocks both to earnings and wealth differentials between black and white households. Specifically, we show that, although a more accommodative monetary policy increases employment of black households more than for white households, the overall effects are small. At the same time, an accommodative monetary policy shock exacerbates the wealth difference between black and white households, because black households own fewer financial assets that appreciate in value. Over a fiveyear horizon, the employment effects remain substantially smaller than the countervailing portfolio effects.
    Keywords: Monetary policy, Racial inequality, Income distribution, Wealth distribution, Wealth effects
    Date: 2022

This nep-pke issue is ©2023 by Karl Petrick. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.