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This article shows that post-Keynesian economics is more closely tied to the proposal of equality of place rather than that of equality of opportunity. More precisely, it advocates for the approach of utilizing equality of place as a means to attain equality of opportunity. These are two conceptions of social policy. Equality of opportunity distinguishes between poor and non-poor, and state intervention is focused on poor people. This mode of intervention promotes individuals' improvements in human capital, assuming that the poor can reach the position they want through a competitive process. In contrast, the idea of equality of place is intertwined with the concept of decommodification and supply-side subsidies. It envisions a scenario in which markets might not ensure that people can access fundamental rights. Consequently, it suggests an alternate role for state intervention. Because some heterodox and post-Keynesian authors have identified with the principle of equality of opportunity, it is important to clarify the nature of the relationship between social policy and post-Keynesian economics. The principle of equality of place can provide a framework of social policy that is consistent with the tenets of the post-Keynesian tradition. [ABSTRACT FROM AUTHOR]

This article analyses late 1960s' and early 1970s' policy debate on issues concerning balance of payments in Sweden. Part of this debate was the question of fiscal austerity as a tool to achieve external balance, and if it could be used without risking economic and social unrest. The aim is twofold: first to empirically shine new light on modern Swedish economic policy in a historic context. Second to theoretically explore new ways of interpreting the relationship between political thinking and economic ideas. Special focus within the second aim are the consequences of political thinking on Keynesian economic ideas as a framework of economic understanding at the time. The study is qualitative in its methods and pays attention to limits within the relationship between economic policymaking and economic expertise. The article highlights conflicting perspectives on Keynesian ideas and the heterogeneity of these perspectives among economic experts. A heterogeneity of this kind is also shown to complicate the assumed close relationship between Social Democracy and Keynesianism in a historic context. In essence, the article shows that studying policy debates in close historic detail makes for new conclusions on the development of modern economic ideas and the part political thinking plays in it. [ABSTRACT FROM AUTHOR]

At the zero lower bound (ZLB), expectations about the future path of monetary or fiscal policy are crucial. We model expectations formation under level‐k$k$ thinking, a form of bounded rationality formalized by García‐Schmidt and Woodford (2019) and Farhi and Werning (2019), consistent with experimental evidence. This process does not lead to a number of puzzling features from rational expectations models, such as the reversal puzzle, or implausible large fiscal multipliers. Optimal monetary policy at the ZLB under level‐k$k$ thinking prescribes keeping the nominal rate lower for longer, but short‐run macro‐economic stabilization is less powerful compared to rational expectations. [ABSTRACT FROM AUTHOR]

We analyze optimal monetary policy and its implications for asset prices when aggregate demand has inertia. If there is a negative output gap, the central bank optimally overshoots aggregate asset prices (above their steady‐state levels consistent with current potential output). Overshooting leads to a temporary disconnect between the performance of financial markets and the real economy, but accelerates the recovery. When there is a lower bound constraint on the discount rate, good macroeconomic news is better news for asset prices when the output gap is more negative. Finally, we document that during the COVID‐19 recovery, the policy‐induced overshooting was large. [ABSTRACT FROM AUTHOR]

AbstractFrom 1975 onwards, the American Keynesian monetary economist James Tobin changed his interpretation of the Keynesian case that active stabilisation policy is sometimes needed to restore full employment, offering a new interpretation that drew on Keynes’s General Theory (Chapter 19) and on Irving Fisher’s 1933 debt-deflation theory of depressions to argue that wage and price flexibility could be destabilizing. Tobin’s very first journal article in 1941 attributed the existence of involuntary unemployment in a Keynesian economy to money wage rigidity and money illusion, as he also did in 1947. From 1975 onwards, Tobin responded to New Classical critiques of Keynesianism by absolving Keynes from assumptions of irrational money illusion or unexplained wage rigidity, arguing instead that Keynes assumed a given money wage in the first eighteen chapters of his General Theory for simplicity of exposition and as a policy recommendation. Like Hyman Minsky and Peter Howitt, Tobin stressed the previously underappreciated Chapter 19 of The General Theory, where Keynes argued that faster adjustment of prices and money wages could be destabilising. The basis of Keynesian macroeconomics was coordination failure and instability, not irrational money illusion or an arbitrary assumption of a fixed money wage. The most important aspect of this discussion of debt-deflation and of macroeconomic instability and coordination failure came through the attention to Keynes’s Chapter 19, Fisher, Minsky, and Tobin in Ben Bernanke’s dissertation on the breakdown of financial intermediation in the US culminating in the 1933 Bank Holiday and in Mervyn King’s 1994 European Economic Association presidential address on debt-deflation. This intellectual preparation shaped the response of Bernanke and King to the Global Financial Crisis of 2007-2009, when they placed absolute priority on preventing a debt-deflation spiral that would take the economy out of its corridor of stability.Presented to the Nice workshop on “Coordination Issues in Historical Perspective,” September 9, 2022. We are grateful for helpful comments from Peter Howitt, Goulven Rubin and other participants there and at a workshop in memory of Jerome de Boyer des Roches at the University of Paris I Panthéon-Sorbonne in June 2022 and from two anonymous referees. [ABSTRACT FROM AUTHOR]

It is well known in the literature that there is a tension between the frequency and duration of the zero lower bound (ZLB) on the nominal interest rate and the determinacy of equilibrium. In this short paper, I show that the presence of downward nominal wage rigidity (DNWR) resolves the tension by preventing a vicious cycle of price declines and output contractions under the ZLB. Consequently, the model with DNWR can replicate the long‐lived ZLB episodes observed in the data. It also implies a plausible size of output and inflation declines at the ZLB. [ABSTRACT FROM AUTHOR]

Copyright of Polish Journal of Economics / Gospodarka Narodowa is the property of SGH Warsaw School of Economics and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Conceptions of social stratification and oppression should be central to post Keynesian inquiry. The article takes a Veblenian feminist view to discuss aspects of oppression in economies of stratification and outlines connections to areas of post Keynesian economics. The article is structured around "five faces of oppression" delineated by political theorist Iris Young: exploitation, violence, powerlessness, cultural imperialism, and marginalization. The paper reframes those based on a conception of evolving social processes and diverse economic relations, and employs Veblen's theory of surplus and stratification, which has a broad understanding of domination that goes beyond capital accumulation. The article provides illustrations of these interconnected aspects of oppression, and discusses how each is co-opted today. The article presents specific connections to post Keynesian economic analysis and concludes by highlighting the potential of post Keynesian economics for social justice. [ABSTRACT FROM AUTHOR]

We summarize the intellectual journey of James R. Crotty in this tribute. We discuss how Crotty's approach to macroeconomics based on Marxian and Keynesian insights led to a series of flexible models based on realistic assumptions that help us better understand the contradictory evolution of capitalism from the 1970s to the 2010s. The basic building blocks of Crottyian macroeconomics consist of the emphasis on macro foundations, focus on the concrete capitalist processes with their endogenous, dynamic, and conflict-ridden nature, and the centrality of money, credit, and competitive dynamics of the capitalist system. We also discuss how a study of these dynamics led to his final work on "liberal socialism" as the way to end the disruptive cycles of capitalism. We argue that those aiming to construct a solid theoretical foundation to guide the understanding, transformation, and transcending of contemporary capitalist societies would find much inspiration in Crotty's intellectual legacy. JEL Classification: E11, E12, B51 [ABSTRACT FROM AUTHOR]

Was Keynes trying to save capitalism or create "Liberal Socialism"? Jim Crotty's unique approach to this long-standing question makes his work an outstanding contribution to heterodox macro policy. Tracing Keynes's policy positions from World War I to Keynes's death in 1946, Jim combines rich historical detail with Keynes's insistence that the realism of assumptions affects the truth content of hypotheses. Jim's book can serve as a guide to policy positions to sustain full employment through the socialization of investment under conditions of class struggle. Contrary to the position that Keynes denied class conflict, there is no fundamental contradiction between Marx's assumption of class conflict and Keynes's policy positions in support of full employment through the socialization of investment. JEL Classification: E6, E11, E12 [ABSTRACT FROM AUTHOR]

This essay responds to the critiques raised by Anke Hassel and Roberto Pedersini by focusing on four themes: the innovativeness (or not) of the growth models (GM) perspective, the need to integrate demand-side and supply-side considerations in the analysis of comparative capitalism, the relationship of the GM perspective to Post-Keynesian economics, and the role of agency and politics. [ABSTRACT FROM AUTHOR]

This study examines the impact of government expenditure on economic growth, focusing on health, infrastructure, education, and agriculture in Tanzania. The data from 1970-2020 were analysed using the STATA software. Government expenditure on education, health, agriculture, and infrastructure sectors were the independent variables, while GDP was the dependent variable. Wagner's law of increasing state activity and Keynesian economic theory were used to guide the study. Unit root test and Johansen co-integration test were conducted. The Johansen co-integration test results indicated the absence of a long-run relationship between all explanatory variables and economic growth. However, the ARDL model revealed that government health expenditure had a low effect on economic growth compared to infrastructure, education, and agriculture expenditures; all of which had higher effects. The study recommends that more government resources be spent on substantial infrastructure. [ABSTRACT FROM AUTHOR]

Copyright of Moneta e Credito is the property of Associazione Economia Civile and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We propose a novel theory of intrinsic inflation persistence by introducing trend inflation and Kimball (1995)‐type aggregators of individual differentiated goods and labor in a model with staggered price‐ and wage‐setting. Under nonzero trend inflation, the non‐CES (constant elasticity of substitution) aggregator of goods and staggered price‐setting give rise to a variable real marginal cost of goods aggregation, which becomes a driver of inflation. This marginal cost consists of an aggregate of the goods' relative prices, which depends on past inflation, thereby generating intrinsic inertia in inflation. Likewise, the non‐CES aggregator of labor and staggered wage‐setting lead to intrinsic inertia in wage inflation, which enhances the persistence of price inflation. With the theory we show that inflation exhibits a persistent, hump‐shaped response to monetary policy shocks. We also demonstrate that lower trend inflation reduces inflation persistence and that a credible disinflation leads to a gradual decline in inflation and a fall in output. [ABSTRACT FROM AUTHOR]

We study the dynamic properties of the coordinated fiscal and monetary stabilization policy in a modern monetary theory (MMT) type macrodynamic model in detail using advanced mathematical techniques and numerical simulations. The dynamic stability, instability of equilibrium points, and questions of qualitative changes at bifurcation points are investigated both mathematically and numerically. Finally, the economic implications of the analysis of this MMT type dynamic model are discussed in contrast to the more orthodox type of Keynesian stabilization policy mix model. [ABSTRACT FROM AUTHOR]

This study empirically evaluates external public debt and economic growth relationships in the Sub-Saharan African region; it anchors on the classical, neoclassical, and Keynesian economic growth theories. Given the lack of consensus amongst researchers from different countries, several research outputs on external public debt have yielded conflicting results. Based on the World Development Indicators (WDI) panel dataset for 1980– 2018, this study applies Autoregressive Distributed Lagged Model (ARDL) using balanced cross-sectional panels. The study makes a novel contribution using vector autoregression (VAR), impulse response functions (IRF), and variance decomposition to show the impact of external public debt innovation shocks on economic growth. The findings of this study support classical economists and Keynesian conflicting views on economic growth and the external public debt relationship. The results reveal a positive and statistically significant long-run relationship between external public debt and economic growth in the countries studied. A positive short-run and negative long-run relationship between economic growth and external public debt are observed in Kenya and Nigeria. These findings are consistent with the classical economist’s stance, suggesting that public debt hampers economic growth. Conversely, Keynesian propositions are confirmed in Malawi, Botswana, and Lesotho, where external public debt has a negative short-run and positive long-run impact on economic growth. Most of these countries responded differently in terms of growth, which may be attributed to the differences in financial deepening, quality of institutions governing fiscal and monetary policies, and trade openness. This study’s empirical results imply that policymakers should focus on a stable fiscal and monetary policy framework. This is possible by ensuring debt sustainability with a sound and secure macroeconomic policy environment in the selected countries. [ABSTRACT FROM AUTHOR]

The purpose of this article is to shed light on the reasons why Brazilian economist Ignacio Rangel's concept of "Projectment Economy" holds great possibilities for research into China's economic development. The article reworks the concept, offering new means of determination and validation criteria to understand Chinese socialism. Issues addressed include surmounting "Keynesian uncertainty," "creative destruction" planning, monetary sovereignty, and the "tacit adhesion pact." These are taken up as categories offering empirical support for the New Projectment Economy concept. The article concludes that the New Projectment Economy is a higher stage of development of the mode of production dominant in the new socio-economic formation that has emerged in China as a result of the economic reforms begun in 1978. [ABSTRACT FROM AUTHOR]

Reviewing Marc Lavoie's comprehensive and well-structured discussion of open-economy macroeconomics allows us to revisit some key Post-Keynesian contributions and confirm their continued relevance to our understanding of international economic, financial and monetary relations. In the process Lavoie draws a consistently sharp contrast with standard-theory concepts and models, much of it organized around his elaboration of endogenous money in an international context and modern trade flows embedded in a highly globalized and financialized world economy which have little to do with comparative advantage. He thereby provides us with a conceptual road map for a meta-economic revolution which recognizes that the world economy has a growth dynamic all of its own rather than being just the sum of its parts, the two-hundred or so national economies connected to each other through their balance of payments and exchange rates. [ABSTRACT FROM AUTHOR]

This work presents and discusses chapter two of Marc Lavoie's book Post-Keynesian Economics: New Foundations. It begins by analysing the concepts of uncertainty and rationality which are extremely important for the post Keynesian approach, and for economic theorizing in general. The notions of fundamental uncertainty and the closely related concept of procedural rationality, are employed in order to build the foundations of a theory of household choice. It proceeds by investigating the repercussions of the theory in a lexicographic/hierarchical analytical framework. In this framework, groups consume different goods depending on their respective needs, income effects are more important than substitution effects, and price competition has a secondary role. It is also shown that Lavoie's approach does not only draw from the work of Keynes and other major post-Keynesian theorists, but also utilizes contributions from other strands of heterodox economics, thus providing an agenda for a possible theoretical synthesis. [ABSTRACT FROM AUTHOR]

This article focuses on an analysis of chapter 4 of Lavoie's magnus opus, Post-Keynesian Economics: New Foundations. It is the opening chapter of the macroeconomic section of the book. As we argue, following Keynes's 'monetary theory of production', but also in line with Schumpeter, starting the discussion over macroeconomics with money makes sense. It is impossible, in post-Keynesian economics, to discuss the real economy independently of the monetary side of the analysis. In this sense, money and production, and debt, are linked within an endogenous money framework. This article covers and discusses all aspects of this chapter. [ABSTRACT FROM AUTHOR]

This article examines Chapter 5 'Effective Demand and Employment' in Post-Keynesian Economics: New Foundations by Marc Lavoie. This chapter covers one of the most distinctive contributions of the post-Keynesians, and one of its most profound insights. Analysis of effective demand and employment is a crucial and distinct foundation of post-Keynesian economics. Identifying the determinants of the level of employment and output represent one of the most significant contributions of post-Keynesian analysis. This is in total contrast to mainstream theory, according to which the level of output and employment are determined in the labour market, with labour seen as just another commodity, and the wage rate playing the role of the price equating supply and demand for labour. For post-Keynesians, the main determinant of the level of output and employment is the level of effective demand rather than the wage rate. Their views on the labour markets, taking into account segmented labour markets and efficiency wages, are considered. The determinants of profits and the profit share play important roles in the determination of employment and output. It is argued that fiscal policy plays a vital role in economic stabilisation, and that the typical arguments regarding its limitations are incorrect. [ABSTRACT FROM AUTHOR]

This article reviews the chapter on growth and distribution of the 2022 edition of the book Post-Keynesian Economics: New Foundations by Marc Lavoie. The review goes through most of the chapter's main topics, including the main classes of growth and distribution models along post-Keynesian lines and the criticism and extensions of these models. It stresses the macroeconomic paradoxes that result from the relation between aggregate demand and either income distribution or debt dynamics in these models. The review also addresses the new additions to the chapter, among which the recent contributions on the controversy on the convergence towards the normal capacity utilization rate and the non-capacity creating autonomous demand growth models, and Lavoie's new section on wealth and personal income distribution. At last, the review discusses three issues raised by the chapter's reading: the relation between realism and complexity for a model's calibration, the consequences of abstracting the financial side of growth models, and how we address financial issues in growth and stock-flow consistent (SFC) models. The chapter reviewed is balanced and constructive; it critically informs the reader and provides a good map of the post-Keynesian literature on growth and distribution, addressing the canons while bringing novelty. [ABSTRACT FROM AUTHOR]

This article represents a systematic presentation of the post-Keynesian alternative to mainstream economic theory. It places observation of reality at the centre of the investigation and derives — through an in-depth examination of post-Keynesian literature — an analytical model capable of interpreting the behaviour of firms in a capitalistic market economy. The chapter on which this article focuses is in a book covering the core elements of this heterodox model, which creates a coherent framework for investigating and interpreting the workings of an economic system that approximates reality. [ABSTRACT FROM AUTHOR]

The conflicting claims approach to the theory of inflation so thoroughly surveyed and well presented in Chapter 8 of Lavoie's [(2022). Post-Keynesian Economics. New Foundations. Cheltenham, UK: Edward Elgar Publishing] book is deservedly becoming increasingly consensual among heterodox (and even some notable mainstream) macroeconomists. However, the relevance of a concept (and the very existence of) a single NAIRU (Non-Accelerating Inflation Rate of Unemployment) derived consistently from the very premises of the conflicting claims approach is still very controversial. In this review article, we will be to argue that a NAIRU is not really useful for the conflicting claims approach. The key aspects explored here are: (1) the different roles of hysteresis in the output and labor markets; (2) the assumptions concerning real profit markups of firms; and (3) the extent to which money wage increases actually incorporate past (or expected) inflation. We also add some remarks regarding the role of changes in international commodity prices and nominal exchange rates that further illustrate the necessary relation between conflicting claims inflation and the theory of distribution and relative prices. [ABSTRACT FROM AUTHOR]

The future Nobel laureates Robert Lucas and James Tobin debated the New Classical challenge to the microeconomic foundations and empirical validity of Keynesian economics, with Lucas singling Tobin out as an interlocutor among Keynesian economists who took the New Classical challenge seriously. Their intellectual exchanges began with Tobin, 'The Wage-Price Mechanism: Overview of the Conference' (1972), and Lucas, 'Econometric Testing of the Natural Rate Hypothesis' (1972), both in Otto Eckstein, ed., The Econometrics of Price Determination Conference (1972). That conference was a milestone in confronting alternative macroeconomic methodologies with each other, but has received relatively little attention in the literature, most notably from Stanley Fischer (in JMCB Supplement, 2007), who characterized 'that volume as representative of the best thinking of the time on the Phillips curve.' This paper examines the debate between Lucas and Tobin that began with their contributions to that conference and that reached a climax with Tobin's Yrjö Jahnsson Lectures (Asset Accumulation and Economic Activity, 1980) and Lucas's Journal of Economic Literature review article on those lectures. [ABSTRACT FROM AUTHOR]

In this paper, we incorporate a stock market and a banking sector in a behavioural macro‐finance model with heterogenous and boundedly rational expectations. Households' savings are diversified among bank deposits and stock purchases, and banks' lending to firms is subject to capital‐related deviation costs. We find that households' participation in the stock market, coupled to the existence of a capital‐constrained banking sector affects the transmission of monetary policy to the economy significantly, and that households' deposits act as a critical spill‐over channel between the real and the financial sectors. Further, we relate the deviation costs in the banking sector with the degree of pass‐through of monetary policy shocks. Last, we investigate the performance of a leaning‐against‐the‐wind monetary policy, which targets asset prices concerning macroeconomic and financial stability. [ABSTRACT FROM AUTHOR]

Tracy Mott was best known as a scholar of the work of Michal Kalecki, but he also made an important contribution to Keynesian liquidity preference theory. In 1983 Tom Asimakopulos generated a firestorm in the Post Keynesian community with a series of articles claiming that while Keynes's argument is that investment creates an equivalent amount of saving, this is true only ex post, after the multiplier has fully operated. Meantime, lack of savings could inhibit investment as the supply of bonds for long-term finance would exceed the supply of savings, driving up interest rates. Several Post Keynesians vociferously responded in defense of Keynes. Mott's contribution to the debate approached the subject from a perspective that was more heavily influenced by Kalecki, Robinson, and Marx. Not only does the outcome of this debate impact our view of investment finance, but it also has implications for our view of financing government deficits. In this piece, I look back at Mott's contribution to our understanding of liquidity preference, taking account of developments in Post Keynesian thought over the past four decades. The two most obvious and relevant are the endogenous money approach and Modern Money Theory. [ABSTRACT FROM AUTHOR]

This paper revisits the dynamic response of hours worked to a total factor productivity (TFP) shock. I estimate a structural vector autoregression that includes time‐varying parameters and stochastic volatility. The estimation produces structural parameters that are consistent with the long‐run identification. The impulse response functions of hours worked to a TFP shock are negative on impact and at the business cycle horizons. This is evidence that Galí (1999) would interpret as supporting new Keynesian theory. My results also show that TFP shocks are the dominant source of variation in average labor productivity. Structural changes in the U.S. economy play an important role in the TFP–hours worked relationship. [ABSTRACT FROM AUTHOR]

This paper examines, from the perspective of Post-Keynesian economics, the effects of Foreign Direct Investment (FDI) on the employment rate in 18 post-transitional European countries from 1995 to 2021. Using a two-step system Generalised Method of Moments (GMM) panel data estimator, we test the hypothesis that the employment impact of investment depends on the interaction of FDI and domestic investment in terms of crowding-in and crowding-out relationships, assuming that this relationship is sensitive to the sectoral distribution of FDI stock. Our findings suggest that the reallocation of FDI inflows from the manufacturing sector to the less labour intensive financial and information and communication technology (ICT) sectors tends to reduce the employment effect of FDI both directly and indirectly by reducing the magnitude of the crowding-in effect of FDI on domestic investment. The outcome of our study is of great interest to economic policy makers. If foreign investment displaces domestic investment and reduces employment in high value-added sectors, policies intended to attract foreign capital could be challenged and undermined. Otherwise, if foreign and domestic investment in sectors with high added value are complementary, it justifies policies aimed at attracting foreign investment. [ABSTRACT FROM AUTHOR]

This article explores the contributions of Victoria Chick, a post-Keynesian economist, to the understanding and restoration of Keynes's General Theory. Chick's work focused on the methodology of Keynes's work and emphasized the role of time in economic analysis. She challenged prevailing economic orthodoxy and collaborated with other scholars to promote post-Keynesian economics. Chick's impact on development economics was significant, as she helped maintain an alternative foundation for the field. The article also discusses Chick's contributions to theory and policy before and after the global financial crisis, highlighting her critique of traditional Keynesian theories and her emphasis on the importance of production and time in economic analysis. Chick's book, "Macroeconomics after Keynes," restores the General Theory as a theory of a monetary economy in time, taking into account endogenous money and uncertainty. The text also discusses Chick's analysis of monetary economics, particularly her critique of duals in post-Keynesian monetary theory and her emphasis on the relationship between assets and income in macroeconomics. Despite facing criticism, Chick continues to advocate for the relevance of Keynesian economics in understanding the world economy. The text concludes by discussing the failure of orthodox economics and the need for alternative theories, highlighting Chick's advocacy for a post-Keynesian approach that addresses power imbalances and socializes investment. The text also calls for a reevaluation of economic theory and a focus on practical solutions to economic challenges, including the climate crisis and wealth distribution. [Extracted from the article]

This article examines the application of Keynesian theory in the field of economic geography, with a specific focus on regional development and the reduction of inequalities. The objective is to emphasize the importance and advantages of applying Keynesian principles to address spatial economic challenges. The novelty lies in examining the intersection of Keynesian economics and geography, which provides insights into regional planning, infrastructure development, and cluster formation. The results demonstrate how policymakers and researchers can utilize Keynesian theory to foster balanced growth and enhance living standards. The keywords for this article are Keynesian theory, economic geography, regional development, disparities, and policy interventions. [ABSTRACT FROM AUTHOR]

This paper presents a long-run study of the relationship between autonomous and induced demand for the United States. Our exercise can be considered a contribution to the burgeoning literature revolving around autonomous demand-led growth models, which have displayed the potential to establish bridges not only within the post-Keynesian community, but also between post-Keynesian economics and other evolutionary and pluralistic approaches to economic growth. In particular, we study the long-run dynamic relationship between autonomous demand – which comprises R&D expenditures, government spending, exports and residential investment – and induced demand. Through a cointegration model with quantile-varying coefficients, we account for the possibility of changes in the relationship between the two variables and demonstrate that the long-run equilibrium relationship between autonomous and induced demand is robust to exogenous shocks and changes in the parameters. [ABSTRACT FROM AUTHOR]

This paper studies optimal interest rate and balance sheet policy in a quantitative New Keynesian model with a constrained financial sector, considering commitment versus discretion in monetary policy design and fixing either instrument. Optimal interest rate policy under commitment (discretion) achieves 93.0% (82.6%) of the potential gains to dual instrument monetary policy under commitment. Optimal discretionary dual instrument policy eliminates the cost of commitment limitations and exhibits no inflationary bias. Under commitment, the optimal balance sheet policy eliminates the cost of suboptimal interest rate policy, for example, an interest rate peg. Finally, I compare optimal policies to implementable rules‐based policies. [ABSTRACT FROM AUTHOR]

This introductory article offers a brief overview of the life and works of Alain Parguez. Special focus is on the personal contact with the authors and on Parguez's major contributions to political economy since the early 1980s when the two authors first met him. [ABSTRACT FROM AUTHOR]

Le regole di politica fiscale derivano da una specifica teoria macroeconomica. Originariamente, le regole sono state proposte nell’ambito della rivoluzione keynesiana. Dal 1997 regole quantitative sono state adottate dall’UE, in coerenza con la teoria macroeconomica oggi dominante. Questo articolo analizza gli effetti di regole quantitative sulla finanza pubblica italiana.

"Keynes on Uncertainty and Tragic Happiness: Complexity and Expectations" by Anna M. Carabelli explores the methodological continuity between Keynes' work on probability and his later economic writings. Carabelli argues that Keynes' method represents a new and sophisticated way of understanding economics, emphasizing reasoning, measurement, and moral dilemmas. The book delves into the concept of uncertainty and its relation to probability, complexity, and incommensurability. It also discusses Keynes' methodology for economic analysis and his views on tragic dilemmas, decision-making, and moral conflicts. The final chapter explores Keynes' ideas on international relations and proposes a solution to global imbalances. While the book presents a convincing argument for continuity in Keynes' writings, it could benefit from further discussion of alternative perspectives and comparisons to other authors, such as Knight and Post-Keynesian scholars, on the concept of uncertainty. [Extracted from the article]

Despite a varied picture in terms of their relative economic strength, Developing and Emerging Economies (DEEs) remain in a subordinate position in the global monetary and financial system. While the IPE and economics literatures provide rich insights about the significance of this phenomenon, research efforts remain fragmented. To address this problem, we offer an umbrella concept—international financial subordination (IFS)—to channel research efforts towards cumulative theory-building. IFS is about unearthing why the structural power of finance takes a particularly violent form of expression in DEEs. To provide structure to IFS as a scholarly field, we first assess the contributions of IPE in analyzing various factors that reproduce IFS. To better ground these efforts in processes of accumulation and the histories of the relation between finance and (post)colonial development, we then offer a critical synthesis of three heterodox traditions—dependency theory, post-Keynesian economics, and Marxism. Next, we develop a pluridisciplinary research agenda organized around six analytical axes: the historical analysis of financial relations, the relations between financial and productive subordinations, the constitutive role of monetary relations as expressions of power, the role of the state, the actions and practices of non-state actors, and the spatial relations of financial subordination. [ABSTRACT FROM AUTHOR]

The Bielefeld School of economics emerged in the 1990s, led by economists located at/or regularly visiting the University of Bielefeld in that period and the following decades, with Peter Flaschel as arguably its central leading figure based at that university. This school drew especially on the work of Richard Goodwin and his nonlinear dynamical models of macroeconomic growth and fluctuations. His work, in turn, drew on both Keynes and Marx as well as Schumpeter. Besides these influences, the school would also eventually add inventory adjustment models due to Lloyd Metzler to model endogenous fluctuations with associated income distribution dynamics with economic growth. While drawing on both classical and Keynesian sources, these models differ from modern New Keynesian models by eschewing rational expectations as well as equilibrium, emphasizing instead ongoing disequilibrium adjustment. While they have some similarities to Post Keynesian models, there has been relatively little interchange or interaction between the two schools. Several in the Bielefeld group appeared to be sometimes critical of Post Keynesians for a perceived lack of rigor in a number of their models. At the same time though there are several sub-schools of Post Keynesian economics similar to the Bielefeld School in approach than others. Probably the clearest area of overlap and similarity involves models exhibiting dynamic complexity, irregular endogenous fluctuations. Indeed one Post Keynesian tradition derives from nonlinear dynamical models due to Kaldor, which resemble those of Goodwin, the main foundation for the Bielefeld School models. [ABSTRACT FROM AUTHOR]

The growth models approach (GMA) has become increasingly prominent in Comparative Political Economy over the last years. While it has originally been developed for advanced economies, there is a growing number of applications for developing countries. This raises the question of how readily transferable the GMA concepts are to the peripheral capitalist experience. This paper explores the analytical building blocks for an extension of the GMA to developing economies from post-Keynesian-structuralist perspective. It argues that in a developing country context supply-side considerations will be more important and build on structuralist theory to understand the 'real' constraints in the developing countries' growth process. It uses Minskyan theory to understand how currency hierarchy creates financial causes for international economic stratification. As a consequence, the role of the state is more crucial than in advanced economies, but at the same time states are more vulnerable. This paper concludes by reflecting on the key concepts of GMA, finance-led, export-led and state-led growth in the light of developing economies and identifying neoliberal as well developmentalist versions of these. [ABSTRACT FROM AUTHOR]

The aim of this paper is to investigate the long run sustainability of a growth path led by multiple non-creating capacity autonomous expenditures in a demand led-supermultiplier model for a small open economy. Using two different models the results show that it is impossible to have in the same model long-term economic growth driven by the non-capacity creating component of domestic demand, exogenous income distribution, long-run balance between productive capacity and aggregate demand and balance of payments equilibrium. Economic viability of the balanced-growth path demands growth to be led by exports, at least for small open economies. [ABSTRACT FROM AUTHOR]

This article comments on Donald Katzner's "The Problem with Probability." Professor Katzner criticizes any approach that uses probability to deal with "Knightian uncertainty." The present article attempts to promote and improve the dialogue between proponents of different approaches to uncertainty and probability, as well as between different proponents of Post Keynesian economics. In this regard, this article highlights (a) the difference between Knightian risk and Savage's uncertainty, (b) the acceptance into mainstream economics of approaches that go beyond both, (c) the fact that Keynes's writings of the mid-1930s combined uncertainty with probability and weight in crucial parts of his theory, and (d) some comments on Shackle by authors in the Keynes literature. This article also intends to provide food for thought, hopefully stimulating Professor Katzner and other sympathizers of Shackle's conception of uncertainty to reconsider the statement or the implication that uncertainty of the strongest type relevant in economic reality is synonymous with complete ignorance about the future. [ABSTRACT FROM AUTHOR]

In 1935, just before the publication of the "General Theory", John Maynard Keynes told his friend George Bernard Shaw that he was 'writing a book on economic theory which will largely revolutionize (p. 493) the way the world thinks about economic problems' ([2]). The chapter reviews early Institutionalist contributions, including the work of the American economist Harold Wolozin and of German-American economist Karl William Kapp, and of more recent authors like Galbraith, [4], and Minsky, which could be used to develop a PKIE approach to ecological issues. A few years earlier, Keynes wrote a letter to Professor John R. Commons where he declared: 'There seems to me to be no other economist with whose general way of thinking I feel myself in such genuine accord' ([1], OCLC No. 40744064). [Extracted from the article]