Search

The cyclical fall in the rate of profit reveals the basic mechanism of the cyclical fluctuation of the economy. A new synthesis of the Marxist crisis theory necessitates calculating the rate of profit as well as considering factors such as capital-labor relations, realization of value, the organic composition of capital, and money and credit. Empirical studies suggest that the U.S. profit rate in real economy showed no signs of effective recovery during 1975-2008. The shrinking profit share caused by growing employment of non-production workers turns out to be the major factor contributing to the cyclical fall in the rate of profit, which in turn may be traced to the reorganization of the production process before the 1990s and the growing flexibility of employment relations after the 1990s. With long-term stagnation of the rate of profit, a new, financialised model of accumulation that heavily depends on increasing liquidity in the economy took shape in the United States, making the U.S. economy ...

This paper analyzes the growing role played by exports and investment in China’s rapid economic growth since 1978. It examines the reasons for the shift over time in China’s growth model, which occurred in stages, and it questions the sustainability of the recent dependence on exports and investment. It proposes structural changes in China’s growth model and considers the obstacles to such changes. JEL classification:O53, F43, O11

This paper presents new nonlinear regression estimates of the relationship between inflation and economic growth for 80 countries over the 1961- 2000 period, using middle-income and low-income countries. We also consider the four separate decades between 1961 and 2000. The paper consistently finds that higher inflation is associated with moderate gains in gross domestic product growth up to a roughly 15-18 percent inflation threshold. However, the findings diverge when we divide our full data set according to income levels. With the groupings by decade, the results indicate that inflation and growth will be more highly correlated to the degree that macroeconomic policy is focused on demand management as a stimulus to growth. We consider the implications of these findings for the conduct of monetary policy. One conclusion is that there is no justification for inflation-targeting policies as they are currently being practiced throughout the middle- and low-income countries, that is, to maintain inflation wi...

Levine & Zervos ( 1998 ) presented cross-country econometric evidence showing that, in a sample of 47 countries, stock market liquidity contributed a significant positive influence on GDP growth between 1976–93. We show that the Levine–Zervos results are not robust to alternative specifications because of the incomplete manner in which they control for outliers in their data. We show that when one properly controls for outliers, stock market liquidity no longer exerts any statistically observable influence on GDP growth.