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on Post Keynesian Economics |
| By: | Ryan Woodgate |
| Abstract: | Disparate assumptions and interpretations across different models of conflict inflation have generated ambiguity and controversy. To address this issue, this paper demonstrates that a variety of prominent conflict inflation models can be derived from one unifying model, which is essentially a log-linear version of the Generalised Conflict Inflation Model (GCIM) seen in Woodgate (2026a, 2026b). Globally stable models (Dutt 1987, Blecker & Setterfield 2019, Lavoie 2022) emerge as special cases when inflation expectations are zero and aspiration-gap coefficients—shown to be frequencies of wage and price changes—are held constant. By reincorporating expectations and allowing frequencies of wage and price changes to rise endogenously with inflation, it is shown that the log-linear GCIM offers a simple but comprehensive post-Keynesian theory of hyperinflation. Unstable models (Hein & Stockhammer 2010, 2011) are then interpreted as special cases where the hyperconflict threshold is surpassed and adjustment frequencies reach their lower bound of one. By unifying these models, this paper helps resolve key controversies while offering a more analytically convenient model than the original GCIM. |
| Keywords: | Inflation, distribution, stability, hyperinflation |
| JEL: | D33 E12 E31 |
| Date: | 2026–10 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2622 |
| By: | Houssam Boughabi |
| Abstract: | This paper reassesses whether household credit operates as a debt-led stabilizer of consumption under Kaleckian mark-up pricing. A compact Kaleckian-Minskyan framework links administered prices to real-wage compression, distributional pressure, credit-financed consumption and financial fragility. Using annual World Development Indicators data for Belgium, France, Germany, Italy, the Netherlands and Spain, the paper constructs real consumption, private-credit and distributional proxies and estimates two-way fixed-effects, country-specific HAC and IV-style robustness specifications. The evidence is sharp but cautious: real GDP growth is the only robust driver of consumption growth in the full panel, while lagged credit growth and distributional proxies are not statistically stable. Spain shows a country-specific debt effect. Debt-led demand stabilization is therefore institutionally contingent, not a uniform Eurozone mechanism. |
| Keywords: | Kaleckian pricing; household debt; income distribution; consumption smoothing; financial fragility; Eurozone; dynamic panel data |
| JEL: | E12 E21 E25 E31 E44 |
| Date: | 2026–11 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2623 |
| By: | Philip Blees; Eckhard Hein |
| Abstract: | Since the 1980s falling labour productivity growth and stagnation tendencies, have been accompanied by labour market deregulation, with different degrees in different countries. In this contribution, we review these two trends in the G7 economies for the period 1981 – 2019 and link them within a post-Kaleckian endogenous growth model augmented by Kaldorian, Marxian and Schumpeterian features. Within this model, we differentiate between the direct effects of labour market institutions on productivity growth and the indirect effects conveyed through distributional conflict. Labour market regulation can affect productivity growth rates through each of these channels. Differences in the development of productivity growth in the G7 are traced back to the dominance of certain channels and their direction in the respective economies, in our terminology different socio-institutional productivity regimes. This sheds light on the institutional background of technical change, while underpinning the relevance of demand-led growth and distribution conflict for productivity growth. |
| Keywords: | Labour market institutions, endogenous technical change, post-Kaleckian model, Schumpeter, G7 economies |
| JEL: | E02 E12 O47 |
| Date: | 2026–11 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2624 |
| By: | Drydakis, Nick |
| Abstract: | This study examines whether pluralistic teaching is associated with students' learning dispositions. The data are drawn from an economic inequality course delivered at an English university between 2016 and 2025. A new scale capturing pluralistic knowledge of economic inequality is developed around six principles: structural and relational ontology; epistemic pluralism and situated knowledge; intersectional and decolonial analysis; normative commitment to justice, equity and transformation; methodological diversity and grounded inquiry; and engaged scholarship and evidence-informed policymaking. The results show that, after completing the course, students reported higher levels of pluralistic knowledge of economic inequality and stronger learning dispositions relating to critical thinking, epistemic curiosity, civic engagement, self-efficacy and social justice. Pluralistic knowledge of economic inequality is also positively associated with these learning dispositions. In addition, both pluralistic knowledge and learning dispositions are positively associated with academic performance in course assessments. These findings are relevant to educators, curriculum designers and policymakers seeking to strengthen students' analytical, ethical and civic capacities in engaging with socio-economic phenomena. |
| Keywords: | Pluralism, Pluralistic teaching, Economics education, Economic inequality, Critical thinking, Civic engagement, Epistemic curiosity, Social justice orientation, Curriculum design, Grades |
| JEL: | A20 A23 B50 D63 I24 I28 Z13 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1853 |
| By: | Thomas Ferguson (Institute for New Economic Thinking); Servaas Storm (Delft University of Technology); Jie Chen (University of Massachusetts Boston.) |
| Abstract: | This paper analyzes the macroeconomic roots of the collapse of the political center in the United States. The argument is straightforward: Of course, all sorts of demagogic political appeals - racism, sexism, anti-immigrant stereotyping - have played integral roles, but a fundamental underlying driver is popular disillusionment with an economy that has for decades failed millions of people and has now eroded the social underpinnings of America's economy to a breaking point. A detailed analysis of the Biden administration's record shows that, contrary to widely heralded claims, there was no major, transformative break in trends of the wages of American workers. Consumer sentiment turned negative under Biden, not because of mysterious "bad vibes, " but due to deeply disappointing real income growth. What did surge, however, was the percentage of wealth in the hands of America's most affluent citizens, thanks especially to the Federal Reserve's quantitative easing policies at the onset of COVID and, later, the AI boom. That had a powerful K-shaped wealth effect on personal consumption expenditures, albeit not as large as sometimes claimed. The paper then extends the analysis backward, showing that during the Neoliberal era key macroeconomic trends spiraled steadily downward for most American households and workers regardless of which party occupied the White House. The paper scrutinizes the long fall of total employee compensation as a percent of GDP and shows that this is not an artifact of a "China shock" or another sudden shift after 2000. It resulted from the Neoliberal policy turn of the 1970s, which prioritized inflation control over (full) employment, favored shareholders while discriminating against workers, promoted deregulated insecure jobs over steady stable employment, and brought permanent austerity for those dependent on social security and healthcare. |
| Keywords: | Inflation; wage-price spiral; wealth effect on consumption; inflation; labor markets; Bidenomics; monopsony; New Deal, labor share. |
| JEL: | E0 E5 E6 E62 O23 I12 J08 |
| Date: | 2026–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:thk:wpaper:inetwp254 |
| By: | Willi Semmler (Department of Economics, New School for Social Research, USA and Bielefeld University, Germany); Samuel Owusu (Department of Economics, New School for Social Research, USA) |
| Abstract: | Since the 19th century, we have seen long-run waves of innovation: first with the introduction of machinery, then with the railroad boom, the creation and diffusion of electricity, the automobile boom, the nuclear power wave, and the internet and digitization boom. AI, as a new innovation wave, is best understood, at least for now, as a rapidly developing cluster of technologies within the wider information revolution, such as numerical, algorithmic, and software innovations, rather than as driven by a single-purpose technology. The scale and wide range of buildup, as well as the possible perils arising from them, make the AI investment boom an urgent case for examining a question that is both technological and financial: How does such a major wave of innovation influence capital and innovation investments? Does it drive excessive borrowing and an asset valuation boom, thereby increasing the economy’s and financial market’s vulnerability, possibly triggering deterioration in credit conditions, declining investments and cash flows, and widening credit spreads and deteriorating refinancing conditions, with sudden disruptions and corrections? Those joint structural changes on the real and financial sides create new governance and adaptive policy challenges. Fixed rules or fixed behavioral features can be costly and ill-suited to economic dynamics that move from new inventions and innovations to rapid diffusion, then to severe balancesheet stress, deleveraging, and possibly financial crashes. We propose a model-guided understanding of the interaction of a Schumpeterian innovation wave with Minskyan financial fragility dynamics. Model Predictive Control (MPC) is a useful numerical method to explore the dynamics in this setting because it solves finite-horizon adaptive policy problems starting from the current state and helps implement governance rules by considering the interactions of the various aspects. |
| Date: | 2026–10 |
| URL: | https://d.repec.org/n?u=RePEc:new:wpaper:2613 |
| By: | Mounssef Bouayad (ENCGK - Ecole Nationale de Commerce et de Gestion de Kénitra); Aziz Babounia (ENCGK - Ecole Nationale de Commerce et de Gestion de Kénitra); Mohammed Adil Ichou (EST - Ecole supérieure de technologie de khénifra) |
| Abstract: | This paper asks whether Morocco's long-run growth remained balance-of-payments constrained after the pandemic and whether travel receipts, workers' remittances, foreign direct investment and the terms of trade jointly alter that constraint. The central research question is whether observed growth over 1998-2024 matches the external ceiling predicted by Thirlwall's Law. The primary hypothesis expects the two rates to be close; three secondary hypotheses assess non-trade foreign-exchange earnings, capital inflows and relative-price effects. This empirical article uses 27 annual observations from Morocco's Office des Changes and the World Development Indicators. It estimates the income elasticity of merchandise imports by ordinary least squares with Newey-West standard errors and supplements the levels relationship with ADF and Phillips-Perron unit-root tests, Engle-Granger and Johansen cointegration tests, an error-correction model, Granger-causality, structural-break and variance-inflation diagnostics. Moving-block bootstrap intervals propagate numerator and elasticity uncertainty. The preferred import-income elasticity is 1.278, implying a classical compatible growth rate of 3.50%, compared with observed real GDP growth of 3.56%. Its 95% interval, 0.51% to 6.25%, requires caution rather than a mechanical ceiling interpretation. Adding travel and remittances raises the accounting estimate to 4.31%, but does not establish a permanent structural relaxation. The error-correction coefficient is negative and significant, while the real effective exchange-rate coefficient is statistically insignificant. The main limitations are the small annual sample, borderline cointegration evidence and the use of consumer-price deflation for non-trade flows when component-specific volume indices are unavailable. The results support a coordinated strategy of export diversification, efficient import substitution and prudent management of foreign-exchange inflows. |
| Keywords: | long-run growth., C22. Paper type: Empirical research, O11, F43, long-run growth. JEL Classification: F32, import elasticity, Thirlwall's Law, balance-of-payments constraint, Morocco, Morocco balance-of-payments constraint Thirlwall's Law import elasticity long-run growth. JEL Classification: F32 F43 O11 C22. Paper type: Empirical research |
| Date: | 2026–09–18 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05754005 |
| By: | Kingsley Kofi Kingsley Kofi Arthur (Kumasi, Ghana); Simplice A. Asongu (Yaoundé, Cameroon); Peter Darko (Kumasi, Ghana); Sampson Adom (Kumasi, Ghana); Emmanuel Frimpong (Kumasi, Ghana.); Omega Hlortu (Kumasi, Ghana.) |
| Abstract: | This study provides an extensive review of modern slavery practices within the global supply chain, highlighting it as a significant human rights violation that affects both the well-being of victims and the overall supply chain performance of organisations. Using secondary data from the Scopus database, we identify critical gaps and propose practical and theoretical approaches to mitigate modern slavery. The findings indicate that globalisation and neo-trade liberalism exacerbate modern slavery across various forms, including forced labour, child labour, labour exploitation, human trafficking, and debt bondage, particularly within sectors such as agriculture, fishing, construction, apparel and fashion, mining, and transportation. Furthermore, we examine the effectiveness of regional and national laws, including the UK Modern Slavery Act of 2015, Australia's Modern Slavery Act of 2018, the California Transparency in Supply Chain Act of 2010, the Uyghur Forced Labour Prevention Act, and France's Duty of Vigilance Law of 2017, and find that while these legislative frameworks are effective at downstream levels of supply chains in developed nations, their impact is limited upstream, particularly in developing countries hindered by weak legal systems and socio-economic challenges, perpetuating social injustices. Additionally, we observe a troubling trend of inadequate financial investment in anti-slavery initiatives, coupled with poor collaboration between scholars in the global south and north, which undermines efforts to combat modern slavery, particularly in less developed regions. To address these theoretical gaps, we propose a Modern Slavery Diffusion Model, alongside practical and policy-level implications aimed at effectively tackling modern slavery issues globally. |
| Keywords: | Modern Slavery; Forced Labour; Child Labour; Human Trafficking, Global Supply Chain; Anti-Modern Slavery Laws; Modern Slavery Diffusion Model |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:agd:wpaper:26/017 |