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on Post Keynesian Economics |
| By: | Wenli Cheng |
| Abstract: | This paper develops a Stock-Flow Consistent (SFC) model to analyze the macroeconomic effects of investment and saving decisions. The model explicitly represents the monetary circuit: money is created when the Bank issues loans to finance production; it circulates the economy through transactions between firms and households; and is destroyed when firms repay their loans with sales revenue. The stationary state is a monetary equilibrium in which the flow of credit, income, and expenditure is synchronized with the flow of inputs, goods and services. We examine three transitional experiments. First, in a capital expansion scenario, we show that when a firm invests, real resources are redirected from consumption to capital formation, compelling households to reduce consumption and accumulate capital wealth. This is real saving. At the same time, the expenditure on capital goods generates new income that cannot be spent on consumption goods (priced at cost) and must therefore be saved. This is monetary saving. Investment thus creates both the real and monetary saving needed to finance it. Second, we investigate two variants of the Paradox of Thrift. In the first, the firm maintains its capital stock in anticipation of recovery, and the contraction proves temporary. In the second, the firm reduces its capital stock, leading to a permanent decline in output and household incomes. The results suggest a fundamental asymmetry: investment creates the saving needed to finance it, whereas households saving does not automatically convert to investment. In the absence of corresponding investment, saving can lead to reduced output and income. The findings also highlight the critical role of firm expectations in determining the long- run consequences of saving shocks. |
| Keywords: | Stock-Flow Consistent Models, Monetary Circuit, Investment-Created Savings, Paradox of Thrift, Business Cycles, Transitional Dynamic |
| JEL: | E12 E21 E22 E25 E32 |
| Date: | 2026–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:mos:moswps:paper_1786924004436_190 |
| By: | Alejandro, Audrey (London School of Economics and Political Science); Meibauer, Gustav |
| Abstract: | What conceptions of ‘the social’ underpin International Relations (IR) theories? Despite the growing engagement of IR scholarship with ‘the social’ dimensions of international politics, the concept remains surprisingly under-specified. Existing debates are theoretically rich but fragmented, offering limited guidance for understanding how different traditions conceptualise the social or how these assumptions are transmitted through the pedagogical accounts of the discipline encountered by students. This article argues that IR theories are underpinned by distinct yet often implicit conceptions of the social that function as unacknowledged ontological commitments. We develop a typology of six conceptions of the social grounded in social theory—functionalist, Marxist, rational choice, systems-theoretical, structuralist, and poststructuralist—and use it to re-read the traditions through which students most commonly encounter the discipline, from liberalism and neorealism to constructivism and critical approaches. We then trace how these conceptions have been reproduced and transformed through the discipline’s pedagogical canon taking widely assigned IR textbooks as our pedagogical point of departure. We show that the coexistence of heterogeneous conceptions renders the social both ubiquitous and under-specified, generating analytical and pedagogical ambiguities. By making these assumptions explicit, the article offers students, teachers, and scholars a clearer vocabulary for analysing, teaching, and debating IR theory. |
| Date: | 2026–08–21 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:8yef7_v1 |
| By: | Alessandro Roncaglia (Sapienza University of Rome) |
| Abstract: | Adam Smith's political economy is best understood as part of a broader inquiry into human beings and society, rather than as a narrow theory of market self-regulation. This paper situates The Wealth of Nations within Smith's wider intellectual project, including his writings on moral philosophy, rhetoric, jurisprudence, and scientific method. It emphasizes the complementarity between self-interest and sympathy, the centrality of the division of labor to Smith's theory of economic development, and the role of institutions, justice, and public action in sustaining commercial society. The paper also revisits Smith's theories of value, prices, distribution, and competition, arguing against interpretations that assimilate Smith to modern general equilibrium theory or reduce the "invisible hand" to a doctrine of automatic market optimality. Smith emerges instead as a theorist of social interdependence, historical development, and institutional complexity. |
| Keywords: | Adam Smith; classical political economy; Scottish Enlightenment; division of labor; sympathy; self-interest; value theory; competition; invisible hand; history of economic thought |
| JEL: | B12 B31 B41 D46 D6 D01 E6 K21 L4 |
| Date: | 2026–05–25 |
| URL: | https://d.repec.org/n?u=RePEc:thk:wpaper:inetwp251 |
| By: | Kshitiz Shrestha (International Center for Public Policy, Georgia State University); Hyojung Kang (International Center for Public Policy, Georgia State University); Jorge Martinez-Vazquez (International Center for Public Policy, Georgia State University) |
| Abstract: | Inclusive growth has emerged as a central concept in both academic research and development policy, yet the literature remains fragmented across definitions, dimensions, and measurement approaches. This paper provides a comprehensive and critical review of the inclusive growth literature, tracing its conceptual evolution from pro-poor growth origins to its current multidimensional interpretation. It synthesizes the key dimensions that emerge consistently across definitions and identifies four core components of inclusive growth - sustained economic growth as a necessary foundation, equitable access to opportunities, broad sharing of growth's benefits, and multidimensional well-being and environmental sustainability. The paper also reviews and evaluates principal approaches used to measure inclusive growth against a common set of principles drawn from the literature. In addition, it situates inclusive growth within the broader post-growth debate, engaging with frameworks that questions the role of economic growth for long-run human welfare. While post-growth perspectives offer valuable normative insights, inclusive growth remains a practical and policy-relevant framework given its ability to incorporate growth while explicitly addressing distributional and welfare concerns. |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:ays:ispwps:paper2627 |
| By: | Philip Alvelda (Brainworks Ventures); Thomas Ferguson (Institute for New Economic Thinking) |
| Abstract: | On July 30, 2026, the Democrats of the Senate Finance Committee put forward an eighty-six page request for outside evidence and proposals that could become a basis for future legislation. They request responses by October 2. We think their critique of the American health care insurance system has many merits. But their proposals in many cases will not work even to fix insurance and they do not reach most of the system at all. The Senate Democrats are building an Archimedean lever that will not move any major part of the health care world. We think this is a sure-fire path to further disappointment and popular anger. |
| Keywords: | health care, insurance, hospital economics |
| JEL: | I11 I18 |
| Date: | 2026–08–04 |
| URL: | https://d.repec.org/n?u=RePEc:thk:wpaper:inetwp252 |