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on Post Keynesian Economics |
| By: | Waitkus, Nora; Savage, Mike; Toft, Maren |
| Abstract: | Wealth inequalities are increasingly prominent in contemporary societies, yet they have not been systematically addressed by sociological class analysis. Yet, class analysis should have a lot to offer: In the literature on wealth inequality, wealth is often approached as a unidimensional distribution – a quantity one can possess more or less of, crystallized in notions of the Top 1%. In this theoretical reflection, we discuss ways in which class analysis can address the gravity of wealth inequality by returning to the origins in the thinking of Marx and Weber, where capital accumulation and property organization were given central stage. Drawing on more recent contributions from Bourdieu, and integrating insights from political economy, theories of racial capitalism and feminist perspectives, we outline ways to enrich class theory through attention to housing, finance, business, and debt. Our intervention allows class analysis to embrace accumulation, exploitation, closure and exclusion making it fit for purpose to address 21st-century social changes. |
| Keywords: | wealth; class; theory; capitalism |
| JEL: | N0 J1 |
| Date: | 2024–08–19 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124635 |
| By: | Possas, Mario Luiz |
| Abstract: | Mainstream Macroeconomics has withdrawn completely from its remote origins in Keynes and Kalecki, replacing the principle of effective demand (P.E.D.) with supply economics, investment with savings, and dynamics with equilibrium as a norm This article discusses, in the event of Kalecki's centenary, the importance of his contribution for the reconstruction of a macroeconomic theory capable of (i) explaining, through P.E.D., the basic causal relations amongst economic variables without any reference to equilibrium; (ii) thus invalidating the false relevant role ascribed to savings; and (iii) bringing macrodynamics back to the core of the analysis of the capitalist economy. |
| Keywords: | Macroeconomic dynamics, Kalecki, Effective demand, Investment and savings |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cessdp:301870 |
| By: | Campana, Juan Manuel |
| Abstract: | The article develops a stylized medium-run post-Kaleckian open economy model with conflict inflation and combines two existing specifications of the income share targets of workers and firms. In the model, only the target of firms is directly affected by the real exchange rate. Workers do not set nominal wages in direct consideration of international relative prices. The target of workers is affected by the rate of capacity utilization, which reflects their wage bargaining position. We analyze the dynamic stability of the model, where a profit-led domestic demand regime or a weakly wage-led domestic regime with low nominal wage setting power of workers and a negative or sufficiently small direct impact of the real exchange rate on the trade balance are necessary conditions for stability. It is shown that the effects of a devaluation on aggregate demand, growth, trade balance, and inflation are generally ambiguous and highly contingent on the parameter constellation of the economy. The effectiveness of a currency devaluation as a stabilization policy remains unclear, its adoption is not without risk, and its negative social and distributional consequences may be large. |
| Keywords: | currency devaluation, distribution conflict, inflation, open economy, Kaleckian model |
| JEL: | E11 E12 E31 F31 F41 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ipewps:301876 |
| By: | Lampe, Florian |
| Abstract: | The West African Economic and Monetary Union (WAEMU) is a currency and customs union that is made up of the eight low-income countries Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. Except for Guinea-Bissau, all member countries of the WAEMU have a shared history as former French colonies. The WAEMU's common currency, the CFA franc, is today pegged to the euro at a fixed exchange rate that is guaranteed by the French treasury. France's influence on monetary policy issues of the WAEMU is still highly present and increasingly contested by political economists, and part of the member countries' civil society. These critics denounce the bilateral exchange rate arrangements as monetary colonialism that outlasted the political independence process from 1954 till 1960 and prevents the West African countries from implementing growth-oriented macroeconomic policies. The proponents of the fixed exchange-rate regime emphasize monetary stability in the form of relatively low inflation rates and a stable external value of the domestic currency. Indeed, the WAEMU zone has shown a remarkably long period of exchange rate stability for the past 30 years. This distinguishes it from Developing and Emerging Economies (DEE) in Latin American or Asian countries in the 1990s and early 2000s, which reacted to balance of payments crises with the introduction of floating exchange rate regimes. The present paper connects to that controversial debate and addresses the important research question if the argument of monetary stability holds considering the current development path of the WAEMU. More concretely, it contrasts the monetary union's resilience against the adverse effects of exchange rate volatility with international competitiveness and a long-term perspective on external debt. On the theoretical level, the study draws on the post-Keynesian liquidity preference theory to elaborate the exchange rate challenges that DEE with internationally integrated financial markets are confronted with. This approach highlights the hierarchical structure of the international monetary system and the resulting adverse implications for peripheral currency areas regarding monetary stability. Furthermore, monetary Keynesian economist have worked out the limitations of an exchange rate-based stabilization strategy arguing that it comes at the expense of losing international competitiveness and a rising international debtor position. These findings serve as a theoretical basis for studying the sustainability of the WAEMU's development path. |
| Keywords: | WAEMU, CFA franc, Post-Keynesian Economics, international currency hierarchy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cessdp:301871 |
| By: | Jackson, Emerson Abraham |
| Abstract: | This paper delves into the vital role of women in economic governance for achieving sustained and equitable growth in Africa. Historically, African women have played significant roles in economic activities and governance structures, particularly in pre-colonial societies, where they were integral to agricultural production, trade, and local governance. However, colonial and post-colonial periods saw a decline in their influence due to imported patriarchal norms. The paper examines how modern initiatives, such as the African Union's Agenda 2063 and the African Continental Free Trade Area, have aimed to promote economic integration and resilience but still face challenges like corruption, inadequate infrastructure, and socio-political instability. It highlights the importance of gender-inclusive governance, supported by research indicating that including women in leadership leads to better financial performance and more sustainable policy outcomes. Case studies from Rwanda, where women hold 61% of parliamentary seats, and Nigeria, where women like Ngozi Okonjo-Iweala have made significant economic reforms, illustrate the positive impact of female leadership. The paper also addresses barriers to women's participation, including cultural norms, patriarchal systems, and legal constraints, and suggests policy reforms to enhance gender equality in governance. Philosophical perspectives on equity and justice, particularly those of John Rawls and Martha Nussbaum, are used to argue for the inclusion of women in governance structures. Strategies for enhancing women's roles through education and capacity-building initiatives are discussed, emphasizing the need for comprehensive approaches to gender equality. The paper concludes by asserting that empowering women in economic governance is not only a matter of fairness but is essential for achieving long-term economic stability and reducing disparities across Africa. |
| Keywords: | Women and Economic Governance; Inclusive and Sustainable Growth; African Continent |
| JEL: | D63 J16 O15 P16 |
| Date: | 2024–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121705 |
| By: | Tom Coupé (University of Canterbury) |
| Abstract: | In this paper, I analyse ChatGPT’s opinion on economic issues by repeatedly prompting ChatGPT with questions from different surveys that have been used to assess the opinion of the economics profession. I find that ChatGPT 3.5 is a one-handed economist with strong opinions, while ChatGPT4o is much more of an ‘average’ economist. I further find little evidence that the widespread use of ChatGPT4o could reduce the gap between what the general public thinks about economic issues and the economics’ profession views on those issues, that ChatGPT4o is about equally likely to prefer professors’ financial advice and the financial advice from popular books, and that ChatGPT4o is more likely to agree with less/nonmainstream views about the economics profession than the economics profession. |
| Keywords: | ChatGPT, Economic Opinion, Economists' Consensus, Public Policy, Artificial Intelligence |
| JEL: | C83 A11 D80 D83 |
| Date: | 2024–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:cbt:econwp:24/13 |