nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2023‒04‒24
six papers chosen by
Karl Petrick
Western New England University

  1. Social common capital accumulation and fiscal sustainability in a wage-led growth economy By Hiroshi Nishi; Kazuhiro Okuma
  2. Ricardo was surely right: the abundance of “easy†rents leads to greedy and lazy elites. A tribute to Geoff Harcourt By Palma, J. G.
  3. Economics and pluralism By Víctor A. Beker
  4. Review of “Credit and Crisis from Marx to Minsky” by Jan Toporowski By Rogissart, Brecht
  5. The changing and growing roles of independent central banks now do require a reconsideration of their mandate By Goodhart, Charles; Lastra, Rosa
  6. Education during the pandemic: an opportunity to transform education systems in Latin America and the Caribbean By Huepe, Mariana; Palma, Amalia; Trucco

  1. By: Hiroshi Nishi; Kazuhiro Okuma
    Abstract: We build a three-dimensional Kaleckian dynamic model, incorporating government-provided social common capital’s long-run stock effects and subsequent debt accumulation. We investigate how fiscal stance changes and demand and distributional impacts in a wage-led growth regime affect social common capital accumulation, economic growth, and stability. The Keynesian stability and Domar conditions are necessary for a long-run economically meaningful steady state, while a proactive fiscal stance promotes higher economic growth and a more sustainable economy. A higher wage share stabilises the economy by increasing the likelihood of satisfying the Domar condition, realising an equitable workers/capitalists income distribution, and establishing a resilient economy.
    Keywords: Social common capital, fiscal sustainability, government debt, wage-led growth, Kaleckian model
    JEL: E11 E12 E25 H54 O40
    Date: 2023–04
  2. By: Palma, J. G.
    Abstract: Paul Krugman once said that two of the greatest analytical challenges of economic theory today (comparable to those faced by Keynes in the 1930s) were the huge deterioration of market inequality in high-income countries, and Latin America’s underperformance. The main aim of this paper is to tackle simultaneously both challenges, while adding a third: the post-1980 underperformance of advanced Western economies. This article tries to answer these three puzzles returning to Ricardo. For him, the original sin of capitalism is that it will always have rentiers lurking around in search of “easy†rents; and that under certain conditions, in a laissez-faire economy they can get the upper hand. If so, they were bound to transform capitalism into a self-destructing rentier paradise. In other words, what has happened in the West (North and South of the Equator) since their 1980s neo-liberal reforms are basically facets of one and the same phenomenon: the inequality augmenting and productivity-growth retarding impact of a specific type of rentier-based accumulation. And the key link between the two is the negative impact that increased inequality has had on investment. If so, Krugman’s puzzle would not really be much of a mystery after all! And this process of “rentierisation†―of which financialisation is just one (although leading) aspect― is now proving to be as toxic for inequality and productivity growth as for our democracy.
    Keywords: David Ricardo, Geoff Harcourt, Paul Krugman, inequality, productivity-growth, “easy†rents, rentiers’ paradise, “rentierisation†, financialisation, “reverse-catching-up†, neo-liberalism, middle-income trap, US, Western Europe, Latin America
    JEL: B00 E02 G01 N10 O11 O47 Q02
    Date: 2023–03–17
  3. By: Víctor A. Beker
    Keywords: pluralism, scientific method, mainstream economics, paradigm
    JEL: B41 A11
    Date: 2021–11
  4. By: Rogissart, Brecht
    Abstract: Review of “Credit and Crisis from Marx to Minsky” by Jan Toporowski.
    Date: 2023–03–23
  5. By: Goodhart, Charles; Lastra, Rosa
    Abstract: In this paper, we analyse why the changing and growing roles of independent Central Banks now do require a reconsideration of their mandate.
    Keywords: accountability; central banking; financial stability; independence; monetary policy
    JEL: M40 J1
    Date: 2023–02–27
  6. By: Huepe, Mariana; Palma, Amalia; Trucco
    Abstract: The COVID-19 pandemic has meant a prolonged economic and social crisis in Latin America and the Caribbean, with profound consequences on the population’s well-being and a silent and devastating impact on education. The abrupt transition to distance learning, with one of the most extended school closures in the world, has had an unequal impact and highlighted pre-existing gaps in the region. The crisis has resulted in paradigm shifts, innovations and lessons learned concerning adapting to remote education, which impede education systems from returning to how things were and force them to restructure to be more resilient and inclusive.
    Date: 2023–03–30

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