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on Post Keynesian Economics |
| By: | Andini, Corrado |
| Abstract: | This paper proposes a theory of the mark-up that is embedded in a circuit model of the capitalist mode of production. The model and the theory are built on Keynes's principle of effective demand, Graziani's monetary theory of production and Pivetti's monetary theory of distribution. The price- setting mechanism is conceived as driven by a Kaleckian rule. The rate of interest on bank loans and the propensities to save of different macro-players are shown to affect the level of the mark-up, thus contributing to explain "labour exploitation" as measured by the average gap between worker's pay and productivity. In other words, "labour exploitation" is seen as being in part originated by monetary phenomena, such as the rentability of bank credit and the macro-players' propensities to accumulate money in a bank account. |
| Keywords: | Profit, Wage, Money, Finance, Capitalism |
| JEL: | B22 E11 E12 E40 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1610 |
| By: | Tsoulfidis, Lefteris |
| Abstract: | Smith's theory of value and distribution, which emphasizes labor time as the determinant of prices, has been widely misunderstood. Ricardo misinterpreted it as relevant only to primitive societies, while Marx mistakenly aligned it with his own labor theory of value. In reality, Smith’s perspective oscillates between a labor-based and a labor-commanded approach to relative prices, intended for modern economies. Neoclassical economists further distorted Smith’s views by incorporating utility theory. Moreover, while Smith is often linked to the theory of a falling rate of profit due to competition, he actually attributed it to rising capital intensity. Contrary to the belief that Smith was a staunch advocate of free markets, he supported reasonable government intervention. |
| Keywords: | Labor theory of value, falling rate of profit, labor commanded, capital intensity |
| JEL: | B00 B31 B51 N00 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124796 |
| By: | Blees, Philip |
| Abstract: | Scrutinizing post-Keynesian theory of endogenous technical progress and Régulation Theory, this paper examines productivity growth and its variation within capitalist economies. The aim is to identify how institutions steer productivity growth. Based on the vast literature demonstrating that institutions not only have a direct impact on the innovative environment but also affect productivity growth by changing distribution and demand, an analytical framework that distinguishes between these direct and indirect effects is derived. Applying this method to Germany and the US from 1991 to 2022, we find that Germany was characterized by a laborled productivity regime, while the US exhibited a state-led productivity regime. This finding explains the more substantial decline in productivity growth in Germany - which was due to changes in the wage-labor nexus -, as compared to the US, where public investment stabilized productivity growth. |
| Keywords: | Endogenous technical progress, growth regimes, institutions, Kaleckian models, Régulation Theory, Germany, US |
| JEL: | E11 O43 O47 P52 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ipewps:319063 |
| By: | Nancy Birdsall |
| Abstract: | Kuznets predicts an economy's return to low inequality once structural transformation has peaked. I explore some headwinds to falling inequality in developing countries given their thorough engagement in the globalized market Kuznets could not have foreseen. Headwinds include plutocrats' abuse of open capital markets to elude taxation, populism in rich countries that prevents migration of labour from less to more productive economies, and climate damage. |
| Keywords: | Inequality, Globalization, Populism, Structural transformation, Capital |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2025-41 |
| By: | Tymoigne, Eric |
| Abstract: | A monetary approach that combines Chartalism, Nominalism, and Command origins of monetary systems is often deemed to have emerged only recently, while the Aristotelian approach (Commodity, Metallism, and Market origins of monetary systems) is the only one that existed until the end of the eighteenth/early-nineteenth century. In the major studies of the history of monetary thought, the Chartalism-Nominalism-Command approach is mostly left unmentioned, or at best reduced to an incoherent banality. The paper shows that this approach has a long and rich intellectual history among uropean monetary thinkers. In Europe, Plato was its first exponent, albeit in a very rudimentary way, and so one may call it the “Platonic approach.” It is developed by Roman legists (such as Javolenus, Paulus, and Ulpian) and Medieval legists (such as Du Moulin, Hotman, and Butigella) who note that coins are similar to securities and that debts are serviced when nominal sums are paid rather than specific coins tendered. During the Renaissance and early modern period, a series of scholars and financial practitioners (such as Law, Dutot, Thomas Smith, and James Taylor) emphasize the financial logic behind monetary mechanics and the similarity of coins and notes. In the twentieth century, authors such as Innes, Knapp, Keynes, and Commons build onto the groundwork provided by these past scholars. In China, the Chartalism-Nominalism-Command approach develops independently and dominates from the beginning under Confucian and Legist thoughts. They emphasize the statecraft origins of monetary systems, the role of tax redemption, and the irrelevance of the material used to make monetary instruments. Clay, lead, paper, iron, copper, and tin are normal and convenient means to make monetary instruments, they are not special/emergency materials. The essence of a monetary instrument is not defined by its materiality but rather by its chartality, that is, by the promise it embeds. The Platonic approach rejects the categories and conceptualizations used by the Aristotelian approach and develops new ones, which leads to a different set of inquiries and understanding of monetary phenomena, problems, and history. |
| Keywords: | History of monetary thoughts, monetary theory, Chartalism, Nominalism, asset pricing, redemption |
| JEL: | B10 B11 B20 B26 E42 E62 G12 H30 K12 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124797 |