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Recently, considerable research effort has been devoted to studying the impact of monetary policy on inequality. This paper summarizes the literature on the causes of rising inequality and looks at the empirical work on interest rates and inequality. It argues that growing empirical evidence concerning the impact of monetary policy on inequality is mixed and that the conflicting results concerning monetary policy and inequality involve, to a large extent, how one measures inequality. Overall, it seems that loose monetary policy increases incomes of those at the bottom of the distribution but reduces their income relative to those at the top of the distribution. The paper also examines some post-Keynesian monetary policy rules to deal with inequality and finds them wanting in many respects. Going further, the paper argues that monetary policy is too a blunt instrument for reducing inequality and that reducing inequality needs to be the job fiscal policy, which is better suited to dealing with this problem and which has the political authority to deal with distributional problems. [ABSTRACT FROM AUTHOR]

Direct cash transfers to households during the COVID-19 pandemic, including relief checks and Child Tax Credit payments, were delayed by weeks for recipients without bank accounts and were not received by many non-filers who lacked the time or resources to complete necessary paperwork. A postal banking system has the potential to expand access to financial infrastructure and enable the rapid distribution of resources to households in need during economic downturns – often the same households that are currently excluded from the financial system. This paper examines the history of the US Postal Savings System and the feasibility of a return to postal banking using evidence on the socioeconomic and spatial patterns of financial exclusion. We find that postal banks would be well positioned to compete with both alternative and conventional financial institutions, address issues with physical branch access, and improve outreach to vulnerable populations. [ABSTRACT FROM AUTHOR]

This paper studies the effects of the recent housing crash on small business survival and household geographic mobility. Although a number of other works have studied these issues, our analysis differs from these because we do not focus only on underwater mortgages (less than 0% home equity), but also those slightly above water (0-10% equity). Homeowners with little or no equity face considerable constraints regarding moving, starting a business or keeping a current business open. They are more like underwater homeowners, but they differ enough to deserve a separate categorization in comparative studies, rather than being conflated with all other homeowners that have positive equity. We use the Federal Reserve’s Survey of Consumer Finances panel data for 2007 and 2009, which allows us to track the exact same households during this critical time in the housing crisis. [ABSTRACT FROM PUBLISHER]

The article offers information on the publication of the journal "Review of Political Economy" from 1988 to 2013.

Child poverty in the United States has averaged around 20% since the late 1970s. During this time period, it has been consistently and considerably higher than poverty rates for other age groups. The case is often made that poverty in the United States is greatly underestimated. The many problems involved in measuring aggregate poverty rate also plague measures of child poverty. This article focuses on how interest payments on prior consumer debt affect government calculations of child poverty. After summarizing the negative consequences of child poverty, we use the Federal Reserve's Survey of Consumer Finances to estimate child poverty rates by subtracting interest payments on consumer debt from household income. The article concludes with some policy proposals for reducing child poverty and the number of households (especially those with children) who are “debt poor.” [ABSTRACT FROM AUTHOR]

This paper uses the Luxembourg Income Study (LIS) to analyze the dimension of the middle class in various Latin American countries. One of its major findings is that during the first decade of this century, the size of the middle class in Latin America did not appear to depend on demographic factors. A second finding is that, in contrast with the majority of developed countries, government income and expenditure policies had little influence on increasing the size of the middle class in the Latin American countries in the sample. Finally, as in the developed world, labor market factors have little influence on the size of the middle class in Latin America, the main exceptions being Brazil and Mexico, where employment seems to increase the size of the middle class. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the editor discusses french economist, Thomas Piketty's capital laws and his book "Capital in the Twenty-First Century".

This paper argues that interest on consumer debt must be taken into account when measuring poverty and inequality. These interest payments cannot be used to support household living standards. This makes middle- and low-income households worse off. Recent increases in consumer debt means that this deterioration in living standards is not captured by conventional government statistics. Using the Survey of Consumer Finances, we make estimates of poverty and inequality that take into account rising interest payments on consumer debt and discuss some of the implications of these estimates. [ABSTRACT FROM AUTHOR]

This paper discusses some of the key contributions of John Kenneth Galbraith to economics and puts them into an historical context. It argues that the work of Galbraith should be recognized as making major contributions to the Post Keynesian paradigm. His work expands on the contributions made by John Maynard Keynes and is consistent with the main ideas of Post Keynesian thought. Much of his work can be thought of as a Post Keynesian microeconomics that needs to be added on to the Post Keynesian macroeconomics begun by Keynes. This work encompasses an understanding of how people behave and how firms behave, a recognition of the importance of uncertainty in the real world, and an emphasis on income effects being more important than substitution effects. The paper then points out how Galbraith has provided a Post Keynesian approach to key macroeconomic issues. The paper concludes with a brief summary of the other articles that make up this special issue to honor John Kenneth Galbraith on the hundredth anniversary of his birth. [ABSTRACT FROM AUTHOR]

The voting paradox has been a problem for both the public choice and rational choice schools. A recent attempt to deal with this paradox argues that voting is like applauding at a concert and is therefore expressive rather than rational behavior. This paper argues that such a move fails because: (1) there are many essential differences between voting and clapping; (2) philosophical problems arise from trying to divorce voting from rational behavior; and (3) there are a number of empirical problems with this position. The paper concludes that expressionism approaches the voting paradox from the wrong side. Problems arise not because of what people do when they vote but because the rational choice and public choice schools have a wrong‐headed view of rationality. [ABSTRACT FROM AUTHOR]

This article introduces the Review of Social Economy symposium on the basic income guarantee (BIG). It argues that there are several ways in which the BIG is consistent with social economics. First, the BIG is an attempt to meet the minimum material needs of US citizens and contribute to the common good. Second, important arguments for a BIG move beyond the positive-normative dichotomy. Finally, the BIG would help individuals function as social citizens. [ABSTRACT FROM AUTHOR]

Galbraith's principal theoretical contribution is foreshadowed in American capitalism and unfolds more clearly into view in his trilogy The Affluent Society, The New Industrial State and Economics and the Public Purpose . His thesis is that the economic ideas that once explained a world of poverty have not adjusted to a world of affluence dominated by the modern corporation. His main themes are the concentration of economic power in the large corporation and the social and environmental imbalance that results from the large corporation. Galbraith attempts to tease out the implications of the uneven development of modern affluence and outlines an emancipatory case for social change. [ABSTRACT FROM AUTHOR]

This paper examines the tradeoffs inherent in guaranteed income proposals. Its perspective is international, using the Luxembourg Income Study and asking whether economic efficiency suffers when governments make greater efforts to protect the poor. Using two different measures of productivity growth, we find no big tradeoff between equity and efficiency. That is, during those times and in those countries where greater efforts were made to protect the incomes of the poor, productivity growth does not seem to be affected very much. This gives some hope that efficiency concerns are not a fatal objection to guaranteed income plans. [ABSTRACT FROM AUTHOR]

Recent trends in economic restructuring and globalization have linked countries in a rush toward riches. However, the consequent growth of world output has not created commensurate employment opportunities. Systemic crises have occurred, and risks have shifted from firms to individual workers. Women have borne a higher share of the costs and reaped a lower share of the benefits. In light of these facts, development activists and scholars have returned to economists' earlier emphasis on human beings as the ultimate end of development. Economically, measures that reduce gender inequity are more effective than gender insensitive policies in reducing population growth rates, alleviating poverty, and improving the health and education of family members. This article examines some of the policies and strategies adopted by governments or women's groups that facilitate women's full participation in the polity and the economy and protect them in the face of adversity. Gender equity can only be achieved through a variety of initiatives and a process of trial and error and will be more effective if women's organizations have the support of governments and international organizations.

Discusses the capability approach theory of economist Amartya Sen. Description of interrelated concepts in capability approach; Distinction between entitlements based on production and exchange; Useful applications of entitlements; Analysis of famines by Sen; Role of capability approach in the development of Human Development Index; Analysis of Sen's theory by various economists.

This paper examines the major economic contributions of Amartya Sen. Sen's contributions fall into three main areas: a philosophical critique of traditional economic assumptions, an attempt to build a more realistic economic science based on the notion of entitlements and human capabilities, and a long series of practical contributions to welfare economics that follow from the capabilities approach - how to measure poverty and inequality better, how to understand famine and hunger, the importance of gender in economic development, and the differences between economic development and economic growth. The paper concludes with a brief assessment of the significance of Sen's work. [ABSTRACT FROM AUTHOR]

Examines the contributions made to economics by David Gordon. Detailed information on his work; Conclusions of examination.

According to orthodox economic wisdom, fiscal policy is incapable of solving the unemployment problem because government deficits crowd out consumer spending, business investment and net exports. This paper argues that neither theoretical nor empirical support exists for such claims. In addition, misplaced and mistaken fears about government deficits have kept national governments from employing fiscal policy when necessary. By abandoning fiscal policy, national governments have contributed to rising unemployment in the developed world. [ABSTRACT FROM AUTHOR]

Introduces the papers concerning unemployment trends in the Group of Seven countries from 1955 to 1994. Implications of the incorrect view of labor market; Reduction of the individual components of demand for the wrong reasons; Unemployment trends.

This paper divides USA government expenditures into an investment component and a consumption component in three different ways, and seeks to determine whether this distinction has any real world impact. Greater government investment spending is not more likely to get politicians re-elected. Nor does government investment have a larger macroeconomic effect than government consumption spending. Government investment does, however, tend to increase business productivity; government consumption, in contrast, tends to reduce business productivity. [ABSTRACT FROM AUTHOR]

Interviews economist, Edward J. Nell on transformational economic growth. Nature of transformational growth; Impact of transformational growth on economy; Outlook on theory of long-term demand and long term-growth; Connections between transformational growth and neo-Ricardian economics.

Interviews U.S. economist, John Kenneth Galbraith. Difference between good economics and bad economics; Factors influencing his views on economics; Views about women and the role of women in the economy; Contemporary economic issues and problems; Views on the proposed value-added taxes; Problems in the deregulation of various industries.

Argues the impact of Keynesian economic policies on economic conditions in the United States. Indications that the country's economy performed well when the policies were adopted and performed progressively poorly as they were abandoned.

Focuses on a study that examines the Luxembourg Income Study (LIS) to compare poverty rates for female-headed families and for other families in a number of developed countries. Details on the Luxembourg income study; Poverty calculations using the LIS; Causes of the gender poverty gap; Testing alternative theories of the gender poverty gap; Alternative approach to the gender gap poverty.

An obituary for economist and former publication editor John Derek Pheby is presented.