Post-Keynesian Economics Research Papers - Academia.edu (original) (raw)

The starting point of this paper is the idea of threshold behavior, which has considerable support in psychology but has been neglected by economists. The implications of having a consumer theory that puts emphasis on threshold behavior towards prices and quantities are examined. It is shown that a threshold-based demand curve can be derived from a hierarchical approach to consumer behavior and also from a customs- or habits-oriented response to price by the consumer. These threshold-based demand curves can provide an additional explanation for price rigidity in the product market.

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- Economic Psychology, Demand Analysis, Keynesian Economics, Post-Keynesian Economics

The abstract of my first book.

- by Ilaria Bifarini
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- Social Psychology, Political Economy, Neoliberalism, Social Engineering

This article seeks to contribute to the analyses of the impact of the Covid-19 on the global political economy. It does so through a qualitative content analysis of the key policy documents published by the International Monetary Fund (IMF) since the outbreak of the pandemic crisis. The IMF has been, historically, one of the main designers of international macroeconomic governance. The paper focuses on fiscal policy, which retains a central place in the strategy of the IMF to deal with the pandemic and especially for the post-pandemic recovery phase. The analysis of the documents of the IMF contributes (i) to appreciate the interpretation of the nature of the pandemic crisis through the lenses of a prominent international financial institution, (ii) to explore the policy strategy outlined to deal with the pandemic emergency, (iii) to assess possible changes at the level of policy, and accordingly, future directions in global political economy. Evidence suggests that fiscal stimulus, public investment and planning will likely have a prominent position in the future directions of the IMF policy advice.

- by Anna Carabelli
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- Keynesian Economics, Post-Keynesian Economics, Keynes

This is a case study of corporate-guided market failure: Coca Cola Inc’s new branded product Coke Life, launched in 2013. ‘Brand failures’ are an accepted part of the business world and regularly feature in the business strategy literature. Here brand failure is reframed as corporate-guided market failure. The study begins by extending the conventional concept of ‘market failure’. Next, it sets-out the context of under-spending on soda drinks which prompted Coca Cola to instigate a new market. Then it analyses of the actions of the Coke Life brand managers within the framework of the seven aspects of a corporate-guided market. Lastly, it evaluates why Coke Life failed to stimulate sufficient sales.

- by Brendan Sheehan
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- Marketing, Business Ethics, Economics, Institutional Economics

Este trabajo busca identificar de qué forma los cambios en la distribución funcional del ingreso incidieron en el crecimiento económico de Uruguay en el largo plazo (1908-2017). Mediante un modelo neo-kaleckiano de crecimiento dirigido por la demanda se mide cómo la cuota de salarios, la cuota de beneficios y la cuota de rentas (participación de los salarios, beneficios y rentas de la tierra en el producto, respectivamente) han impactado en el crecimiento del consumo, inversión, exportaciones e importaciones; en función de este impacto, se identifican los diferentes regímenes de crecimiento que ha atravesado el país en el periodo mencionado. Los resultados obtenidos muestran que aumentos en la cuota de beneficios han impactado negativamente en el crecimiento económico de Uruguay, impacto negativo que se habría acentuado desde comienzos de la década de los setenta; la cuota de rentas, por su parte, ha incidido positivamente en el crecimiento del país, aunque su incidencia ha sido reducida. La cuota de salarios incidió positivamente en crecimiento económico durante todo el periodo de análisis. Los resultados de esta investigación buscan contribuir a la comprensión histórico-económica de los efectos de la distribución funcional del ingreso sobre el crecimiento económico, así como a la discusión de cuál debió haber sido el énfasis distributivo de las políticas para favorecer al crecimiento; las estimaciones realizadas sugieren que las políticas públicas debieron favorecer una mayor participación de los salarios en el ingreso para promover un mayor crecimiento económico.

This paper examines two theories of the ‘subprime crisis’ or ‘GFC’. The ‘Financial Architecture’ theory holds that the failure of the financial system was fundamentally driven by institutional faults, especially in private sector risk management and public sector regulation and underpins the system reform approaches currently being taken by much of the developed world. The other theory, referred to as the ‘inevitability school’ here, emphasises the irrational aspects of human behaviour and complex systems which lead to inevitable cycles and collapses. This paper provides a framework for assessing the relative merit of these two theories in explaining the current crisis and then applies that framework to existing evidence focusing on the role that
institutional governance failure may have played. The general conclusion is that both schools explain parts of the crisis, but that institutional reforms are likely to have relatively little preventive effect beyond the short to medium term.

- by Cameron Gordon
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- Finance, Economics, International Economics, Macroeconomics
- by Oliver Kloss
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- Post-Keynesian Economics, Ökonomie, John Maynard Keynes, Sozialphilosophie

I contend that current discussions on what the pandemic has taught us about monetary and fiscal policy are myopic. It is the purpose of this chapter to broaden the political economy horizon so that we might think anew about pathways through the crisis and perhaps a new fiscal and
monetary order. Part of doing so is understanding that capitalism was not born in a void but in unequal power relations and a massive social transformation that benefited and, arguably continues to benefit, the few.

- by Tim Di Muzio
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- Economics, Political Economy, Money and Banking, International Finance

Squilibrio Il labirinto della crescita e dello sviluppo capitalistico prefazione di Paolo Leon Le ragioni dello squilibrio sono essenzialmente nell'incapacità delle imprese e delle famiglie di conoscere gli effetti macroeco-nomici delle loro azioni. Naturalmente, sono le decisioni di im-presa che muovono l'economia, ma non è chiaro come tali decisioni siano prese, e quanto influenzino e siano influenzate dall'andamento dell'economia nel suo complesso. Così, se è indubbio che l'economia è trainata dalle decisioni impren-ditoriali, tuttavia sono gli effetti non conosciuti di queste decisioni che alterano continuamente la struttura. Una delle ragioni dell'intervento pubblico sta proprio nell'ignoranza dei decisori. Molto rilievo, in questo libro, è dato al progresso tecnico, specialmente nella sua forma di nuove tecniche «superiori»-ovvero quelle che costa-no di meno e producono di più rispetto a quelle esistenti, quali che sia-no i rapporti tra i prezzi dei fattori della produzione [...]. Un avanza-mento introdotto nel libro è nella qualificazione del progresso tecnico come elemento della domanda effettiva, proprio per gli effetti macroe-conomici dell'applicazione delle nuove tecniche. Nello squilibrio, tutta-via, gli imprenditori non sanno se le tecniche scelte siano effettivamente superiori per l'economia nel suo complesso, e così si possono facilmente presentare grandi fallimenti, distorsioni nei prezzi e nei costi, sprechi ge-neralizzati, situazioni che giustificano l'intervento pubblico. Gli autori guardano al progresso tecnico anche per illustrare la poca fondatezza delle politiche europee, che apparentemente incoraggiano l'innovazione, ma chiudono nella prigione del «consolidamento fisca-le» l'unico soggetto, lo Stato, capace di mettere in moto l'innovazione.

- by Stefano Lucarelli
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- Marxist Economics, Post-Keynesian Economics, Schumpeter, Nicholas Kaldor

An ironic take on Hayek's "Road to Serfdom," this essay illustrates how capitalism, and its unbridled form during the neoliberal era, has placed us on a path to twenty-first-century serfdom. This modern serfdom is characterized by the realization of capitalist exploitation - the fusion of global labor markets, chronic underemployment, and the coercive nature of student-loan debt. Co-written with Cherise Charleswell for the Winter 2016 issue of New Politics.

- by Colin Jenkins
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- Labor Economics, Education, Marxism, Marxist Economics
- by Martijn Konings
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- Cultural Studies, Political Economy, Neoliberalism, Philosophy of Time

The present work seeks to explore the techniques of the Stock-Flow Consistent (SFC) method as an alternative to and tool for criticizing the mainstream economics and, therefore, of developing in the future a framework for unifying the heterodox thought. The paper discusses the main features of that methodology, presents a survey of the recent SFC literature, and critically analyzes the mainstream. Some accounting flaws are exposed in the Mundell-Fleming model, in standard neoclassical models, as well as in a recent IMF discussion paper.

- by Sylvio Kappes and +1
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- Post-Keynesian Economics, Stock Flow Consistent Modelling

It is now widely understood that neoliberalism came to be entrenched in the legal systems of many states after the effective collapse of the Bretton Woods monetary order in the early 1970s. What is not widely understood, though, are the relations between this turn to neoliberalism and the contemporaneous success of international human rights movements. Many scholars now regard the 1970s as critical for the operational “breakthrough” of individualistic human rights. Yet work on the political economy of this “breakthrough,” especially its relation to the consolidation and concomitant normalization of neoliberalism, is still in its infancy. This article attempts to develop a finer understanding of the relationship between neoliberalism and human rights by examining the “North-South Commission,” chaired by former German Chancellor Willy Brandt during the late 1970s and early 1980s. Established with the aim of facilitating “dialogue” between the “First World” and the “Third World,” the Group of 7 and the Group of 77, the commission sought unsuccessfully to win support for a model of global political economy in which enhanced aid, lending, debt-relief, investment, and technology transfer would foster economic growth and meet “basic needs” in the South while countering inflation and unemployment in the North. While the commission’s work has generally been understood as a form of global Keynesianism, and is sometimes linked to the New International Economic Order project of the 1970s and early 1980s, I argue that the commission articulated a broadly rights-friendly form of economic development that accommodated certain elements of the neoliberal movement.

- by Umut Özsu
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- Finance, Development Economics, Development Studies, Globalization

Analyzing and solving today’s eurozone crisis with its flawed institutional design (including national legal systems differing greatly in their capability to reliably enforce contract and tax law) poses an insurmountable challenge to both orthodox and heterodox economics. Both fields are working with corrupted basic conceptual distinctions and lack a precise legal and institutional foundation that could serve to systematically detect these flaws. Fundamental rethinking of the type Keynes attempted during the 1930s in response to the great depression is in order. A unified paradigm for a political economy of capitalism that provides conceptual precision, integrative power and analytical depth can be created empirically by (1) using precise basic conceptual distinctions made by codified continental (private and public) law, international law and business accounting, (2) taking into account basic micro-macro paradoxes (such as the paradox of thrift) stemming from simple accounting identities and (3) noting the inherent instability of private credit resulting from financial claims and liabilities being nominally fixed while “real assets” (property titles) are nominally variable and thus, subject to constant re-evaluation in light of expected future returns. In order to understand problems of creating capitalism in post socialist, developing and eurozone countries (like greece) with weak legal institutions, the perspective of standard insights from (4) legal and economic anthropology and (5) comparative history have to be added. Within this paradigm, existing approaches within economics can then be re-interpreted and integrated, creating a powerful, coherent and differentiated synthesis that has the potential to challenge the hegemony of the neoclassical paradigm. Some of the potential of this approach will be demonstrated by example: using basic concepts of private and public law and simple balance sheet logic, the controversy between property economics (Heinsohn/Steiger) and modern monetary theory (Wray) regarding “state money” can be resolved empirically.

- by Wolfgang Theil and +1
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- Monetary Economics, Institutional Economics, Legal Anthropology, Economic Anthropology

revealed that even though there is a short-term trade-off between unemployment and inflation, this will disappear in the long term and Phillips Curve might become vertical. Lucas developed this point of view as well as the view of microeconomics which accepts all individuals as rational, and then he adapted them to macroeconomics. He published one of his main works titled "Econometric Policy Evaluation: A Critique" commonly known as "Lucas Critique" in 1976. In this article, he explained that if a government policy change is made based on the current data and expectations, unanticipated results may occur. According to the theory of rational expectations that Lucas took as his basis, a change in government policy will also lead to changes in the behavior and expectations of people considered as rational. Furthermore, when decisions and expectations of people change, the time's conditions which are the basis of policy change do not comply with the conditions after the change. Thus, the foreseen results while making a policy change may not be correct. In order to make any predictions, future data and the direction of rational expectations should also be taken into consideration. For instance, although a 3-point decline in inflation in the past caused a 2-point increase in unemployment, this cannot be used as a model while making a future forecast. Lucas summarized his ideas in Lucas Critique as "given that the structure of an econometric model consist of optimal decision rules of economic agents, and that optimal decision rule vary systematically with the change in the structure of series relevant of the decision maker; it follows that any change in policy will systematically alter the structure of econometric models" (Lucas, 1976, p. 41). The Rational Expectations Theory supposes that in forming expectations, "all available and relevant information" is used by individual economic agents, and then this information is processed in a brilliant fashion. (McCallum, 1980, p. 38) Even though sometimes individuals are mistaken on their expectations, their assumptions are correct, generally. The mistakes could be caused by two reasons: Although the individuals might have all data, they can decide wrong or they might not be able to reach all data. However, their decisions are still rational. American economist John F. Muth developed this theory and proposed in his work titled "Rational Expectations and the Theory of Price Movements" in 1961. He argued that the models of expectations should be changeable due to the changes in the structure. Since the economic agents make their decisions based on the data, after some changes in the structure or government policy, the expectations also change. If Keynesian

- by Erkam Salih Buyukdinc and +1
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- Econometrics, Macroeconomics, Macroeconometrics, Keynesian Economics

'Money' is a Creature of Law - but how specifically so? This presentation develops a legal institutionalist concept of money as a means of payment, distinguishing 5 basic types along the lines of three distinctions in continental (roman law based) law: private vs. public law, claims/debt vs. property, and state enforceable law vs. stateless custom (non law). From there, the controversies (1) between metallists and nominalists over the "intrinsic value" of "commodity money" and (2) between MMTers and Perry Mehrling on why the state's money is often the "best" money are solved. Money is "backed" by state enforcement not only of tax claims, but of contractual claims in private law as well. It is shown why only modern states with reliable impersonal, bureaucratic institutions and secure private law (property rights, contract) can achieve a superior degree of monetary sovereignty, while weak and failed states are dollarized, and how despite the westphalian system of international law suggesting equality of nation states, behind the international hierarchy of currencies, there is a hierarchy of nation states. Intro to monetary circuit macro model based on this: https://www.youtube.com/playlist?list=PLyRk2yIHSNKndma7yOQi1iRzoRV0SqATC (Seminar at BI Norwegian Business School, Oslo)

Dagli anni 1970 il capitalismo mondiale sta conoscendo un’impressionante fase di riorganizzazione, sotto l’influsso della rivoluzione tecnologica e della conseguente tendenza alla accelerazione “dei tempi” e alla riduzione “degli spazi”. Il filo conduttore di questo ampio processo globale – che prende il nome di finanziarizzazione – è l’aumento esponenziale delle transazioni finanziarie sui mercati, delle logiche finanziarie nelle pratiche di gestione d’impresa, ma più in generale dei comportamenti degli agenti economici riconducibili a “motivi” intimamente legati alla finanza.
In questo lavoro cercheremo di dare un’interpretazione che sia la più complessa e sistemica possibile di questa nuova fase di finanziarizzazione che interessa il capitalismo mondiale – ma in particolare le economie dei paesi anglosassoni – e la cui comparsa coincide con la fine del regime di accumulazione fordista negli Stati Uniti tra gli anni 1960 e 1970. Ciò, con il supporto di un costrutto teorico che integra elementi di pensiero marxiano e post-keynesiano, il cui beneficio è quello di darci gli strumenti analitici necessari per una comprensione alla radice della attuale e complessa società capitalista.
Dopo una contestualizzazione storica che permette di evidenziare i fattori decisivi e scatenanti, che spiegano e favoriscono il ritorno egemonico degli interessi della finanza sull’economia globale – progressivo nel caso dell’ultimo quarto del XX secolo ma ricorrente nella storia lunga del capitalismo –, ci focalizzeremo in seguito sulle evidenze specifiche alla finanziarizzazione riscontrabili nell’economia statunitense durante il periodo 1970-2010.
Assimilando il regime economico statunitense a una economia monetaria di produzione, mostreremo dapprima con l’apporto di due studi econometrici gli effetti negativi sull’investimento in “capitale fisico” che sono attribuibili alla finanziarizzazione delle imprese tipicamente non-finanziarie. Ragionando poi in termini di “circuito del credito”, e seguendo in questo gli insegnamenti della “teoria del circuito monetario”, sarà possibile far emergere quegli effetti causati dalla diminuzione dell’accumulazione del capitale (che è propria della fase di finanziarizzazione) sul regime economico analizzato.
L’aumento dell’indebitamento privato e delle disuguaglianze di reddito e di ricchezza va così interpretato come una manifestazione prettamente endogena al fenomeno analizzato; l’espansione del credito bancario per il finanziamento del consumo tramite indebitamento diviene la condizione necessaria alla riproduzione di un sistema economico finanziarizzato, che nel tentativo di ristabilire il margine di profitto delle imprese porta alla contrazione dei redditi da lavoro, il tradizionale canale di sostegno della domanda aggregata statunitense. Anche l’evoluzione discordante del saggio di profitto e del saggio di accumulazione del capitale che persiste dagli anni 1980 è un caratteristica essenziale di questa nuova fase di finanziarizzazione del capitalismo, la cui individuazione e comprensione permette di intuire quelle che già sono le nuove forme di valorizzazione e di accumulazione del capitale “adeguate” e utili alla riproduzione della forma finanziarizzata attuale assunta dal capitalismo.

- by Gioas Perozzi
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- Capitalism, Financialization, Post-Keynesian Economics, Monetary circuit

The economic origins and sociopolitical impacts of what became known as “Keynesian Economics” have not received substantial attention from economists, political scientists and philosophers about its mode of governance. This study explores the rise and consolidation of Keynesianism as a mode of governance responsible for creating collective forms of power relations in the postwar world, investigating the possible effects of economic ideas once they reach the political arena. Specifically, we apply a “political economy of power” (PEP) framework to understand the emergence of Keynes’s economic theory and its transformation into a policy agenda that had specific consequences in terms of power, governance and regulation of the economy and the population. While Chapters 1 and 2 respectively promote a bibliographical reading of Michel Foucault’s genealogy of power and John Maynard Keynes’s economic, philosophical and political foundations, Chapter 3 introduces a historical investigation based on primary sources and official documents about the absorption and acceptance of the Keynesian economic theory in Postwar’s economic policies. Our Political Economy of Power (PEP) framework developed throughout Chapter 4 deploys a dual-historical approach, combining institutional and genealogical aspects to analyze the transformation of Keynesianism into a policy agenda between the end of the 1930s and beginning of 1970s across Western Europe and the United States. Our conclusions are buttressed by the epistemological and political shift caused by Keynesianism as a political paradigm, or a “governmentality”. The Keynesian mode of governance was successful in bringing economistic principles and economic technicality into life, thus affecting the ways populations are governed. Consequently, technical economic instruments and welfare systems were actually a technical-scientific justification of intervention via a discourse of power that defended stability, economic growth and welfare. Once Keynesianism established itself as a mode of governance we see the rise of a security society in which policies involving full employment, demand management, economic stability and social security point out towards new forms of control and regulation in the shape of a security pact between the state and the population. Parallel to that, we also invite the reader to return to our original intellectuals – Foucault and Keynes – to shed light on the issue of economic activity as a teleological end of human life. By exploring their ethical writings we stress how economics should be reviewed and reconsidered as a means to achieve an ethical end: the good life. Such trajectory, in Foucault’s rationale, becomes a form of self-government in which the individual transforms himself/herself within the economy and understands economic activity as a means of action – rather than an end.

- by Danielle Guizzo
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- Political Economy, Political Philosophy, Michel Foucault, Keynesian Economics

On the methodological plain, this paper outlines the conditions that contribute to the development of economic theories and it continues with an examination of the concrete circumstances that gave rise to modern neoclassical macroeconomic theories. The paper further claims that the current impasse in macroeconomics is indicative of the need for new directions in economic theory which becomes imperative in the long economic downturn that started in 2007 and concludes by suggesting the need for a synthesis between the classical analysis and the theory of effective demand.

In this paper, I make a review of three distinct approaches on the process commonly referred to as "financialization" in the political economy literature; namely, (i) that of Lapavitsas, (ii) of Bryan, Rafferty and Martin, and (iii) of Toporowski. After documenting the perspectives regarding how they explain and define the essentials of this global phenomenon based on their theoretical choices, I collate and and compare their definitions and critiques.
Finally, I evaluate these three different positions in regard to how they consider (i) the distinction between ‘financial’ and ‘real’, (ii) the debate on the return of the rentier, (iii) changing class relations and power technologies, and (iv) whether financialization mark a definite rupture in capitalism. It should be noted that critiques related to arguments based on ‘orthodox’ economics such as ‘efficient market hypothesis’ or sort are excluded.

- by Ahsen Akdal
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- Political Economy, Marxism, Marxist Economics, Capitalism

This paper discusses Japanese motor vehicle manufacturing investment and state intervention measures in the Australian market. Australia’s auto industry is an extension of global motor vehicle manufacturers with a small number of domestic manufacturing firms that form a part of the global supply chain. Toyota Motor Corporation, Mitsubishi Motor Corporation, General Motors Corporation and Ford Motor Company all have had extensive investments in the Australian market. In the past, the Australian market was also a host to investments from Volkswagen AG, Chrysler LLC, Nissan Motor Company Limited and British Leyland Motor Corporation. The size of the industry has shrunk recently with the March 2008 shut down of manufacturing by Mitsubishi Motors Australia Limited (MMAL), not long after the company’s emergence from a long and significant restructuring. Still, the auto industry remains the largest single manufacturing sector in Australia both in terms of investment levels and the number of people employed. Thus, Japanese auto manufacturing investment in Australia require an evaluation, now that the federal government has completed the 2008 ‘Review of Australia’s Automotive Industry’. The paper focuses on Toyota Motor Corporation Australia (TMC Australia) in Victoria and (the recently shut down) MMAL in South Australia.

- by Celal Bayari
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- Business, Industrial And Labor Relations, Organizational Behavior, Management
- by Pasquale Commendatore
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- Economics, Macroeconomics, Post-Keynesian Economics

With the recent development of the Occupy Movement, public criticism of neoliberalism has climaxed since the onset of a global financial crisis in late 2008. The mobilization of protesters in cities throughout the world was preceded by much speculation in the media and blogosphere over the past few years, where commentators have been quick to suggest that the end of neoliberalism is upon us. The validity of postneoliberalism, however, remains tenuous, as its advocates continue to treat neoliberalism as a monolithic, static, and undifferentiated end-state. Despite the desire to move beyond neoliberal strictures, there is an undeniable continuity to neoliberalism that must be appreciated if we ever hope to leave this unforgiving version of capitalism truly in the past.

- by Simon Springer
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- Critical Theory, Economic History, Sociology, Economic Sociology

Las ganancias son el objetivo central de la producción y el motor de la acumulación. Es el criterio último que utiliza el capitalista en la selección de nuevas técnicas de producción, y por ende una de las variables clave que condicionan el nivel y ritmo de acumulación y crecimiento. Sin embargo, no existe una única definición de ganancias y las diversas teorías económicas suelen asignarle un disímil grado de importancia. El propósito del presente trabajo es analizar, revisar y comparar las posturas teóricas neoclásicas, keynesianas, postkeynesianas y marxistas en relación a la naturaleza de las ganancias, su rol y principales determinantes así como examinar las implicancias que tiene el abordar esta temática de modo diferente. Abstract Profits are the main goal of production and the engine of capitalist accumulation. It is the ultimate criterion used by capitalists in the selection of new production techniques, and thus one of the key variables that conditions the level and rate of accumulation and growth. However, there is no single definition of profit nor the different economic theories assign equal importance. The aim of this paper is to analyze and compare the neoclassical, Keynesian, Post Keynesian and Marxist theoretical frameworks regarding the nature of profits, their determinants and role in accumulation, as well as to examine the implications of approaching this issue differently.

- by Juan E Santarcángelo
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- Economics, Development Economics, Political Economy, Marxism

The Great Recession of 2009 and the current economic stagnation calls into question the validity and usefulness of Mainstream economic theories. The post-Keynesian approach provides a rich and relevant alternative, far better able to explain modern and complex economic phenomena. This article is intended as an overview of their main micro and macroeconomic contributions, as well as the significant limitations of their mainstream counterparts. Will be addressed the epistemological, ontological and methodological post-Keynesians principles and their theories of prices, firm, consumers, economic growth, money and international trade.

- by Oliver Kloss
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- DDR, Post-Keynesian Economics, Nationalsozialismus, Ökonomie

The essay argues that a Marxist materialist analysis is fundamental in understanding and articulating the current international social/economic conjuncture. We sketch the theoretical framework underlying such an analysis, apply this framework broadly to describing the key phenomena defining our era, and draw some general strategic conclusions on what political approach and tasks revolutionary Marxists should be currently focusing on.

- by Bruce Parry
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- Economics, Environmental Economics, Technology, Marxism

John Maynard Keynes was certainly the most famous and arguably the greatest political economist of the twentieth century. His seminal publication, The General Theory of Employment Interest and Money, published in 1936, changed economics irrevocably. Unfortunately, Keynes was not well-served by his followers, and much of his bold vision is missing from standard textbook treatments of his work. This essay sets the record straight by having four key objectives. First, as context, it provides a biographical sketch of Keynes achievements and the ‘interesting’ times which he experienced, the single most important event being the Great Inter-War Depression. Second, as further context, it introduces the essentials of the classical orthodoxy, the pre-Keynesian macro-economic theory of how economic society worked, and its conservative policy agenda, from which Keynes departed. Third, the core of the essay, it faithfully explains the key concepts and ideas of his new workable classification in which effective demand was the driving force, and the many-layered policy programme known as the Middle-Way, which he fashioned over time to meet the challenges posed by the Great Depression, World War 2 and the post-war world. Lastly, it sets-out the reasons why Keynes can be described as one of the greats of political economy.

- by Brendan Sheehan
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- Finance, Economics, International Economics, Monetary Economics

Ce mémoire examine l’endettement bancaire des étudiants québécois et ses rapports avec la financiarisation du capitalisme. Nous définissons la financiarisation comme un processus de bancarisation de la reproduction économique des salariés depuis les années 1970. À partir de cette décennie, le crédit à la consommation financé par les groupes bancaires est venu se substituer à la couverture providentielle de l’État keynésien en retrait en multipliant les relations d’endettement bancaire sur cartes de crédit, hypothèques, etc. Par le résultat de la privatisation du financement de la reproduction économique et de la précarisation de l’emploi, l’endettement bancaire est devenu un pilier essentiel des stratégies de reproduction économique des salariés nord-américains. L’importance croissante de l’endettement des salariés dans le bilan des banques ainsi que l’autonomisation financière de leurs clients traditionnels a profondément transformé les techniques de gestion de la dette, notamment par la diffusion des pratiques de titrisation. Tentant de ressaisir théoriquement l’endettement bancaire des salariés dans ses multiples composantes empiriques, nous définissons la monnaie comme rapport social d’endettement et l’économie capitaliste comme circuit financier opérationnalisant la circulation de la dette corporative durant la période fordiste du capitalisme et celle des salariés sous la financiarisation, suivant l’économie politique post-keynésienne et circuitiste. Nous montrons le rôle joué durant la financiarisation par la transformation néolibérale des techniques de gouvernement des populations que nous définissons comme gouvernementalité de l’endettement. Examinant l’histoire du circuit financier québécois à travers une étude de cas de la Fédération des caisses Desjardins, nous établissons l’existence d’un circuit financier québécois caractérisé par la place importante du secteur public dans la garantie offerte aux relations d’endettement générées par les institutions financières privées. En montrant la réalité d’une restructuration néolibérale et financiarisée de l’économie canadienne et québécoise, nous examinons l’endettement étudiant québécois pour le mettre en rapport avec la financiarisation du capitalisme et son organisation institutionnelle en circuit. Nous concluons que l’endettement étudiant bancaire public, au Québec, répond de la configuration institutionnelle du circuit financier québécois et que l’endettement sur les produits de crédit privés correspond à une instance d’endettement provoquée par la précarisation des conditions de reproduction économique, leur publicité indiquant la place qu’y occupe les techniques néolibérales de gouvernementalité.

Does there exist a trade-off between labour income share and output growth rate? Or does a reduction in the wage share reduces the output growth rate? These questions remain central for analysing the impact of
change in income distribution on the output growth rate. Since the dilution and suspension of labour laws involve exogenous changes in income distribution, the impact of such policies would depend on the
relationship between income distribution and aggregate demand. This paper attempts to lay bare this relationship for the Indian economy through an empirical analysis of India’s macro data and a theoretical
model based on the regression results.

In recent years, diverging demand and growth regimes have received greater scholarly attention. In particular, the intersection between different variants of Comparative Political Economy and the post-Keynesian macroeconomic analysis provides a promising avenue for understanding the main dynamics of various growth regimes. Yet, the majority of these studies has focused on the global North. In this contribution, we expand this analysis to the global South by examining eight large emerging capitalist economies (ECEs) – Argentina, Brazil, China, India, Mexico, Russia, South Africa, and Turkey – during the periods 2000-2008 and 2009-2019. In so doing, we not only uncover the main demand and growth regimes of ECEs for the two periods, but also link these results to the main trends in the demand and growth regimes of developed capitalist economies (DCEs) for both periods. One of the main findings of our research is that ECEs did not follow the same path as DCEs after the Great Recession. While there was a clear shift in the demand and growth regimes of DCEs towards an export orientation, the main pattern in the ECEs remained the continuation of a trend that had already emerged before the 2007-09 crisis, i.e. domestic demand-led models. Finally, we provide some observations on the puzzle of resilient domestic demand-led models in ECEs.

- by Umit Akcay and +1
- •
- International Economics, Political Economy, Economic Growth, Financialization

In the third-quarter of the twentieth century John Kenneth Galbraith was probably the best-known economist in the world. He gloried in taking the road less travelled, challenging the conventional wisdom, the doctrines and myths, which sustain the social order. But criticism was never enough for Galbraith. He created an alternative analysis, an unconventional wisdom, of how capitalism works: the general theory of advanced development. It emerged over the course of four of Galbraith’s key books: American Capitalism (1952), The Affluent Society (1958), The New Industrial State (1967) and Economics and the Public Purpose (1974). It’s an audacious economic, political and social theory in the eclectic tradition of North American Institutionalism, which gives a new twist to the insights of Edward Chamberlain, Joan Robinson and John Maynard Keynes. Disappointingly, mainstream economics has ignored it; no trace is to be found in modern economics textbooks.
The essay has five objectives. To provide a comprehensive explanation of the general theory of advanced development; to explain how corporate capitalism, faced with the twin threats of either depression or persistent inflation, evolved; to outline the social and political implications of this economic system; to set-out Galbraith’s innovative agenda of reform; and to provide a provisional assessment of his contribution to political economy.

- by Brendan Sheehan
- •
- Sociology, Economics, Institutional Economics, Macroeconomics

Çalışmada Keynesyen paradigmayı Keynesyen geleneklere bağlı olarak devam ettiren Post Keynesyen İktisat Okulu’nun ekonometriyi metodolojik olarak kullanımı irdelenmektedir. Bu noktada ekonometrinin, Post Keynesyen iktisat okulunda önemli bir yer tuttuğu görülmektedir. Ancak ekonometrinin, Post Keynesyen iktisatta kullanımı, eleştirel gerçeklik ile örtüşmekte ve Neo Klasik iktisadın önermelerinin zıttı bir özelliğe sahiptir.

- by Ömer Tuğsal Doruk
- •
- Post-Keynesian Economics, Iktisat Metodolojisi
- by Ståle Holgersen
- •
- Creative Writing, Finance, Economic History, Economic Sociology

İktisat öğrencilerinin yararlanması dileğiyle...

- by Ata Devrim
- •
- Economic policy, Post-Keynesian Economics, Rational Expectations, Monetarism