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on Post Keynesian Economics |
| By: | Oktay Özden; Alp Erinç Yeldan |
| Abstract: | We present a two-household stock-flow consistent (SFC) model of the UK economy using data from the Office for National Statistics (ONS). The model explores the dynamics of post-COVID inflation with a particular focus on the interplay between inflation and income inequality, drawing on the theoretical framework of income conflict. It comprises six sectors: households (disaggregated into rentiers and workers), non-financial corporations, monetary financial corporations, insurance corporations and pension funds, the government, and the rest of the world. Employing a combination of estimation and calibration techniques, the model replicates key macroeconomic aggregates reported by the ONS between 2020 and 2023. We impose several short-term scenarios on the model to evaluate the model’s capabilities to capture distributive tensions underlying recent inflationary developments. Our results suggest that an orthodox monetary policy intervention by the Bank of England exclusively administered through interest rate management performs poorly in taming inflation and further worsens income inequality. In contrast, an alternative scenario based on progressive incomes policy administered through increased taxation of rentier incomes, rather than any monetary intervention on the interest rate, is found to generate significant improvements in income distribution and a notable reduction in inflation. |
| Keywords: | Stock-Flow Consistent Model, UK economy, post-COVID inflation, income inequality |
| JEL: | E12 E17 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2519 |
| By: | Kuprianov, Alexey |
| Abstract: | This paper proposes a wealth cap mechanism as an innovative alternative to traditional wealth taxation, where excess wealth above a specified threshold is redirected into charitable foundations rather than government coffers. Drawing on Rawlsian principles of justice, it is argued that current extreme wealth disparities cannot be justified. The paper addresses key objections including democratic accountability concerns and capital flight risks. It’s concluded that the wealth cap could transform competitive wealth accumulation into competitive philanthropy, creating a more ethical form of capitalism that addresses socioeconomic challenges while preserving market incentives. |
| Date: | 2025–08–05 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:xwcqf_v1 |
| By: | Sarracino, Francesco; Slater, Giulia |
| Abstract: | Nearly one hundred years ago, John M. Keynes envisioned a future where material concerns would fade, allowing individuals to focus on leisure and well-being. Similar expectations were common in Keynes' days, when industrial progress promised to yield productivity gains, which would increase wages and lift workers out of poverty. Freed from material constraints, individuals would devote more attention to personal interests, relationships, and quality of life. One hundred years later, history proved that Keynes was right about economic growth, but individuals remain focused on material concerns at the expense of quality of life and of the environment. Why did economic activity deliver affluent, but socially and environmentally unsustainable societies? What possibilities are there for our future, the one of our grandchildren? In this article, we first review the evidence on the unsustainability of the current economic model. We discuss the role of economic growth for well-being, providing new evidence on defensive consumption, and illustrating a new explanation of unsustainability. We then discuss Neo-humanism, an evidence-based narrative to promote sustainable quality of life, ensures thriving lives in socially and environmentally sustainable societies. A shift towards sustainable quality of life is possible thanks to the insights from decades of research in this field. |
| Keywords: | neo-humanism, subjective well-being, post-growth, sustainability, social capital, quality of life, defensive growth, beyond GDP |
| JEL: | I00 I3 I31 O10 P0 Q50 |
| Date: | 2025–07–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125369 |
| By: | Godinho, Enzo; Mattos, Beatriz |
| Abstract: | This paper investigates the role of the New Development Bank (NDB) in challenging global financial hierarchies while fostering an ecological transition. The NDB, established by BRICS, has a mechanism of providing development finance in local currency, which could reduce dependency on core currencies like the dollar (USD) and the euro (EUR), offering an alternative for peripheral economies to finance sustainable development. Given the institutionalization of the green economy agenda and the rise of green finance, the paper raises elements to assess the NDB's contribution to the ecological transition through its investment strategy. Our analysis builds on structuralist and dependency theories, identifying three interlinked hierarchies - productive, currency, and environmental - that shape global financial asymmetries. We examine the NDB's project portfolio from 2016 to 2024 and the interplay between the projects' area of operation, currency of funding, and country of implementation. The findings indicate that, while the NDB has made strides in funding sustainable infrastructure, its operations remain largely embedded within dominant currency systems. |
| Keywords: | New Development Bank (NDB), BRICS, Green Finance, Currency Hierarchy, Ecological Transition, Development Finance, Sustainable Infrastructure |
| JEL: | F33 F55 O44 Q56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ipewps:324644 |
| By: | Furse, Simon |
| Abstract: | This paper examines two literatures that try to understand the biophysical constraints placed on the economy and economic growth. Firstly, exergy economics uses the second law of thermodynamics to examine the aggregate exergy conversion process to the useful stage. This shows the dependency of the economy on physical laws and highlights the limits to continued productivity growth. I argue that exergy economics provides a vital contribution to economics, but previous attempts to integrate it into an economic framework are undermined by a reliance on the neoclassical production function. Secondly, ecological macroeconomics examines biophysical constraints to the economy using heterodox economic theory and models. My review of this literature shows that productivity growth is often modelled as unconnected to energy and materials and able to increase exponentially into the future despite biophysical constraints. The paper argues that biophysical limits to productivity growth need to be considered alongside the more commonly modelled damage functions and limits to resource availability and quality in ecological macroeconomics. |
| Keywords: | Exergy, Energy, Societal Exergy Analysis, Ecological Macroeconomics, Technical Change, Production Functions, Limits to Growth |
| JEL: | E12 O44 Q43 Q57 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ipewps:324638 |
| By: | Leonardo Rojas Rodriguez (National University of Colombia. Laboratory (UNAL), Bogotá,); Álvaro Martín Moreno Rivas (National University of Colombia. Laboratory (UNAL), Bogotá,) |
| Abstract: | This chapter presents a general overview of the macroeconomic and environmental characteristics of the Colombian economy. The main thread of the analysis seeks to establish the structural specificities of the economy and the institutional constraints that define the initial conditions for shaping an ordered and sustainable process of decarbonisation of productive activities. This characterisation is fundamental for situating the expectations and objectives of adaptation to climate change in the short, medium, and long term. Taking a holistic view of the transformation processes—which includes adapting different theoretical models—, the responsibilities of institutional actors are evaluated in terms of their use of material and energy resources, as well as their greenhouse gas (GHG) emissions. This evaluation takes place within the framework of structural feasibility for transformation, the limits of which are defined by the three gaps of the economy: the external sustainability gap (growth restricted by the balance of payments); the social gap (the need to overcome levels of inequality and poverty); and the environmental gap (requirements to achieve environmental efficiency targets and fulfil Paris Agreement commitments to reduce GHG emissions by 2030). |
| Abstract: | Ce chapitre présente un aperçu général des caractéristiques macroéconomiques et environnementales de l'économie colombienne. Le fil conducteur de l'analyse vise à établir les spécificités structurelles de l'économie et les contraintes institutionnelles qui définissent les conditions initiales pour façonner un processus ordonné et durable de décarbonisation des activités productives. Cette caractérisation est fondamentale pour situer les attentes et les objectifs d'adaptation au changement climatique à court, moyen et long terme. En adoptant une vision holistique des processus de transformation — qui inclut l'adaptation de différents modèles théoriques —, les responsabilités des acteurs institutionnels sont évaluées en termes d'utilisation des ressources matérielles et énergétiques, ainsi que de leurs émissions de gaz à effet de serre (GES). Cette évaluation s'effectue dans le cadre de la faisabilité structurelle de la transformation, dont les limites sont définies par trois écarts de l'économie : l'écart de durabilité externe (croissance limitée par la balance des paiements) ; l'écart social (la nécessité de surmonter les niveaux d'inégalité et de pauvreté) ; l'écart environnemental (les exigences pour atteindre les objectifs d'efficacité environnementale et respecter les engagements de l'Accord de Paris visant à réduire les émissions de GES d'ici 2030). |
| Keywords: | Energy transition, Social inclusion, Climate finance, Sustainable development, Climate resilience, Carbon neutrality, Développement durable, Résilience climatique, Neutralité carbone, Transition énergétique, Inclusion sociale, Financement climatique |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05163818 |
| By: | Rob Van Eynde; Kevin J. Dillman; Jefim Vogel; Daniel W. O'Neill |
| Abstract: | Post-growth has emerged as an umbrella term for various sustainability visions that advocate the pursuit of environmental sustainability, social equity, and human wellbeing, while questioning the continued pursuit of economic growth. Although there are increasing calls to include post-growth scenarios in high-level assessments, a coherent framework with what is required to model post-growth adequately remains absent. This article addresses this gap by: (1) identifying the minimum requirements for post-growth models, and (2) establishing a set of model elements for representing specific policy themes. Drawing on a survey of modellers and on relevant post-growth literature, we develop a framework of minimum requirements for post-growth modelling that integrates three spheres: biophysical, economic, and social, and links them to post-growth goals. Within the biophysical sphere, we argue that embeddedness requires the inclusion of resource use and pollution, environmental limits, and feedback mechanisms from the environment onto society. Within the economic sphere, models should disaggregate households, incorporate limits to technological change and decoupling, include different types of government interventions, and calculate GDP or output endogenously. Within the social sphere, models should represent time use, material and non-material need satisfiers, and the affordability of essential goods and services. Specific policies and transformation scenarios require additional features, such as sectoral disaggregation or representation of the financial system. Our framework guides the development of models that can simulate both post-growth and pro-growth policies and scenarios, an urgently needed tool for informing policymakers and stakeholders about the full range of options for pursuing sustainability, equity, and wellbeing. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2508.07974 |
| By: | Philip McGann |
| Abstract: | This paper examines the case for, and context in which, an urban wealth fund (UWF) or a regional wealth fund (RWF), can realistically and meaningfully be established in UK cities and regions in a manner which helps to encourage investment capital back into economically weaker regions. Much of the current discussion regarding the links between industrial strategies, governance devolution nationally-orchestrated investments in renewables and national productivity growth, largely fails to consider in detail the particular effects on, or specific responses to, the capital markets, at the local, city, regional or national levels and the consequential local financial and fiscal implications of these effects and responses. The UK central-sub-central fiscal system is not well-designed to foster capital flows in economically weaker regions, and therefore finding ways to reform the interactions between the financial system and the fiscal system is essential in order to rejuvenate whole swathes of the UK economy is critical. The wealth fund model offers an important potential step in this direction. The fact that the wealth fund-types of arguments have received support from many of the UKs most prominent economists also underscores that these arguments have credibility and are worth serious consideration. These wealth fund types of arguments have strong links with various high-level fiscal and macroeconomic management debates currently taking place in the UK, but rather than national debt management issues, the arguments put forward here focus specifically on the economic nature, behaviour and role of cities and regions. It is argued here that, if properly constructed as genuine wealth funds, these institutions can provide a key piece of the jigsaw of how cities and regions may be 'turned around' in a manner which builds long-term investor confidence and investment flows back into weaker local economies. |
| Keywords: | Economic growth; Regional Economies; uk economy |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:nsr:niesro:66 |
| By: | RENI BUNEVA (Sofia University Saint Kliment Ohridski) |
| Abstract: | Geert Hofstede?s cultural-dimensions model has long served as a foundational tool for interpreting cross-cultural differences in organizational and educational settings. However, its six static dimensions?derived from corporate surveys?risk oversimplifying the fluid and intersectional nature of culture within today?s diverse classrooms. This article critically reevaluates the framework?s applicability to teacher training, curriculum development, and educational leadership, exposing methodological and theoretical limitations that foster stereotypes and obscure intra-national and identity-based variation. Drawing on contemporary scholarship (Ng, 2021; Bennett, 2016) and complementary perspectives (Trompenaars & Hampden-Turner, 2012; Norton, 2015), an alternative model of critical intercultural pedagogy is proposed. Key components include qualitative, ethnographic inquiry into students? lived experiences; dialogic, co-learning environments; intersectional analyses of overlapping identities; and critical media literacy to contest dominant cultural narratives. By replacing rigid cultural rankings with dynamic, context-sensitive approaches, this pedagogy seeks to cultivate genuine intercultural competence, promote inclusivity, and prepare learners for meaningful engagement in an increasingly interconnected world. |
| Keywords: | Intercultural Education; Critical Intercultural Pedagogy; Hofstede?s Cultural Dimensions; Culturally Responsive Teaching; Global Citizenship Education; Teacher Education; Curriculum Development; Cultural Stereotyping; Cultural Competence; |
| JEL: | I21 Z10 Z13 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iacpro:15216830 |
| By: | Askitas, Nikos (IZA) |
| Abstract: | Generative AI (GenAI) and Large Language Models (LLMs) are moving into domains once seen as uniquely human: reasoning, synthesis, abstraction, and rhetoric. Addressed to labor economists and informed readers, this paper clarifies what is truly new about LLMs, what is not, and why it matters. Using an analogy to auto-regressive models from economics, we explain their stochastic nature, whose fluency is often mistaken for agency. We place LLMs in the longer history of human–machine outsourcing, from digestion to cognition, and examine disruptive effects on white-collar labor, institutions, and epistemic norms. Risks emerge when synthetic content becomes both product and input, creating feedback loops that erode originality and reliability. Grounding the discussion in conceptual clarity over hype, we argue that while GenAI may substitute for some labor, statistical limits will, probably but not without major disruption, preserve a key role for human judgment. The question is not only how these tools are used, but which tasks we relinquish and how we reallocate expertise in a new division of cognitive labor. |
| Keywords: | automation and outsourcing, technological change, labor economics, autoregressive models, Large Language Models, Generative Artificial Intelligence, human-machine collaboration knowledge work, epistemic norms, digital transformation |
| JEL: | J24 O33 O31 J22 D83 L86 J44 O38 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18070 |