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on Post Keynesian Economics |
| By: | Mark Setterfield (Department of Economics, New School For Social Research, USA) |
| Abstract: | This paper provides a brief introduction to social structure of accumulation theory (SSAT), for a special issue of the New School Economic Review on SSAT. |
| Keywords: | Social structure of accumulation, institutions, long waves, conflict, uncertainty |
| JEL: | B51 B52 E11 E12 O43 P1 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:new:wpaper:2408&r= |
| By: | Thomas I. Palley |
| Abstract: | Keynes' General Theory was a massive step forward relative to classical economics, but it was also a step backward in its denial of the conflictual nature of capitalism. There is need to understand Keynes' technical contributions regarding the workings of monetary economies, but also need to understand the flaws within his thinking and the consequences thereof. Keynes made a fundamental contribution elucidating the mechanism of effective demand, and he also has claim to be the preeminent monetary theorist. However, owing to his denial of conflict, he had a flawed view of capitalism which is why establishment Keynesianism struggles to explain contemporary stagnation. That flawed view also undermines the case for Social Democracy. Contrary to conventional wisdom, his view of capitalism is supportive of Neoliberalism and Keynes can be viewed as a compassionate (Third Way) Neoliberal. |
| Keywords: | Hysteresis, institutions, policy lock-in, psychology, identity, ideas |
| JEL: | B40 E10 E12 E32 P50 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:imk:fmmpap:92-2023&r= |
| By: | Matías Vernengo |
| Abstract: | Right-wing critics of Keynes have often suggested that he was a socialist. His policy proposals were very often described as a slippery slope that would lead society into a totalitarian nightmare. Alternatively, from the left, Keynes was often seen as a reformist that intended to preserve the essence of capitalism. His reforms were mere window dressing on an exploitative system. The scholarship on Keynes also remained divided. However, in the last few decades a more robust position in favor of Keynes' socialist affiliation was developed, particularly in the careful scholarship by Rod O'Donnell and James Crotty. This paper suggests that while Keynes was a pragmatist willing to experiment in economic policy, and fully aware of the need to transform and transcend laissez-faire capitalism, he remained a liberal, in particular because Labourites, and most socialists, remained conservative in their economic policy outlook. Keynes was a revolutionary in economic theory, but a moderate in his politics. |
| Keywords: | Neoclassical Economics, Socialism, Macroeconomics, Keynes |
| JEL: | B13 B14 B22 B31 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:imk:fmmpap:94-2023&r= |
| By: | Sascha Keil (Chemnitz University of Technology); Walter Paternesi Meloni (Sapienza University of Rome) |
| Abstract: | Over the past decades, models of circular and cumulative causation, based on the endogenous relations between prices, exports, and labour productivity, have lost prominence in explaining economic dynamics. We argue that, in the absence of counterbalancing mechanisms, the combination of price-sensitive exports and the triggering effect of exports on productivity can enable feedback loops and can significantly shape macroeconomic reality in the short-to-medium run. We apply an adapted export-led model of cumulative causation to 10 major countries belonging the Euro area, a region characterized by divergent wage growth trajectories reflected in divergent export competitiveness and lack of equilibrating mechanisms. Specifically, the model is tested for the period 1995–2020 employing a country-level system of equations (3SLS-ARDL). Our findings indicate that for the majority of the countries examined, this feedback mechanism – comprising price-sensitive exports and export demand affecting productivity growth – exacerbates macroeconomic disparities in terms of labour productivity. While nominal wages act as a potential trigger through their impact on price competitiveness, they also serve as a central factor that retards the feedback mechanism due to the Verdoorn effect of wage-induced demand. Overall, our results affirm the significance of price-induced and export-led theories of cumulative causation while also delineating its limitations, particularly regarding price competitiveness-oriented export-led growth strategies. |
| Keywords: | international trade, export, competitiveness, unit labour cost, wages, productivity, European imbalances |
| JEL: | F16 F41 J30 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:tch:wpaper:cep063&r= |
| By: | Thomas I. Palley |
| Abstract: | This paper introduces the notion of monetary disorder. The underlying theory rests on a twin circuits view of the macro economy. The idea of monetary disorder has relevance for understanding the experience and consequences of the recent decade-long period of monetized large budget deficits and ultra-easy monetary policy. Current policy rests on Keynesian logic whereby a large fall in aggregate demand warrants robust offsetting monetary and fiscal policy actions. That logic neglects potential monetary disorder being bred within the financial circuit in the form of inflated asset prices and leveraged balance sheets. That disorder is likely to develop long before inflation accelerates so that inflation targeting fails to protect against it. Political factors increase the policy danger as the benefits of disorder are front-loaded and the costs backloaded. The paper concludes with a policy discussion regarding how to prevent Keynesian goods market counter-cyclical stabilization policy from causing monetary disorder. |
| Keywords: | Monetary disorder, twin circuits, inflation, asset price bubbles, budget deficits, modern money theory (MMT) |
| JEL: | E00 E12 E30 E40 E63 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:imk:fmmpap:93-2023&r= |
| By: | Seth R. Gitter (Department of Economics, Towson University); Robert J. Gitter (Department of Economics and Business, Ohio Wesleyan University) |
| Abstract: | Hiring a new economics faculty member is a time-consuming and arduous process, especially for smaller, teaching-oriented programs with limited faculty and budgetary resources. Access to information on graduate programs and candidates that are more likely to yield successful hires allows these programs to allocate scarce resources more efficiently. A dataset of over 650 economics PhD placements at non-economics PhD-granting institutions partially fills this information gap. Results show that new assistant professors in teaching-oriented economics departments tend to be hired from economics PhD-granting institutions with a mean U.S. News and World Report ranking of around 45. In addition, results indicate a positive relationship between the rank of the hiring department and the PhD-granting program. Top-ranked graduate programs in economics send a smaller proportion of their graduates to teaching-oriented institutions, and the average rank of new PhD hires has declined over time. Hires from top PhD- granting programs are more likely to stay at liberal arts colleges and less likely to stay at national universities relative to peers hired at lower-ranked PhD programs. |
| Keywords: | Market for Economists, PhD placements, Small Liberal Arts Schools, and Professor Retention. |
| JEL: | A11 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:tow:wpaper:2024-05&r= |
| By: | Huenchuan, Sandra; Del Castillo Negrete, Miguel |
| Abstract: | In this book, those who search for an equitable and sustainable future will find a valuable collection of methodological proposals, case analyses and recommendations for varied aspects of development. This book is an indispensable tool for decision-makers, researchers, development professionals and anyone interested in inequality issues. When diving into its pages, readers will discover a comprehensive approach based on evidence and endorsed by the experience and knowledge of experts. The book addresses topics ranging from poverty and income inequality to social protection, agriculture, energy, innovation, productivity and investment. It pays special attention to inequality gaps to understand them more fully and precisely. The groundbreaking research included in this book springs from the New Narratives for Rural Transformation in Latin America and the Caribbean project implemented by the Mexico City Subregional Headquarters of the Economic Commission for Latin America and the Caribbean (ECLAC). The International Fund for Agricultural Development (IFAD) funded this book. |
| Date: | 2024–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:69152&r= |