This short editorial introduces a new temporary section within the journal, on the future of reformed capitalism. Many observers consider economic problems a cause of political malaise. Thence a renewed attention for political economy issues and for political developments and their relationship with the economy. In the new section, the Review welcomes contributions and comments on the foreseeable future and the options available for economic policy and for reforms at the global and/or national level. JEL codes: P11, P21, D72

This study’s primary concern is that exporting or multinational firms tend to be more reliant on intermediate imports with major currencies. We investigate the effects of exchange rates on value-added exports in the linkage with the exports-FDI feedback for sustainable free trade development in OECD countries. Our bilateral findings are that the exchange rate effects are greater for gross than value-added exports except for Germany and greater for intermediate goods than final goods exports except for Italy. But there are no significant differences in the effects of exchange rate changes on exports regardless of US dollar and other currencies. Meanwhile, foreign income has a positive effect on all exports, and the exports-FDI feedback has a weak positive effect on exports to China due to increased FDI into China while the value-added exports-FDI nexus has a weak positive effect on all FDIs. JEL codes: F31, F32, F40

This short note introduces the debate on the future of economic policy and reform of capitalism, to be hosted in a new temporary section of the journal. It is essential to debate how to achieve a balance between ‘bread’ (economic security) and ‘liberty’ (political freedom), in a dynamic sense, implying that the relative importance between the two logical extremes must vary with the context. In the new section, the Review welcomes contributions and comments on the foreseeable future and the options available for economic policy and for reforms at the global and/or national level. JEL codes: P11, P21, D72

It is assumed that Marx focuses on profits that are to be realized in larger production that permits some surplus production. This understanding underpins the importance of increasing returns embedded in employment dynamics associated with larger employment bases. This organizational form not only permits increases in profits in production but also supports employment-based learning by doing-led new investment opportunities that maintain and increase such profits. The conception of profits changes from the employment dynamics-based one, to one that relies more on market power-based returns. Accordingly, the present paper argues that empirical analyses should not focus on a falling rate of profits as such: they should rather focus on what factors make clear the behaviour of the rate of profit, and clearly distinguish between the employment dynamics-based profits and the profits that relate more to the returns to higher fixed costs. JEL codes: B5, E11, O14, P17

This paper investigates the consistency of the Italian National Recovery and Resilience Plan with the economic and industrial policy objectives outlined in the “Next Generation EU” plan and the European Commission’s New European Industrial Policy. We analyze official policy documents in order to highlight some macroeconomic impact indicators with respect to the mission-based allocation of European and national financial resources. The New European Industrial Strategy is particularly challenging; industrial objectives outline a structural challenge capable of reshaping much of the industrial structure and strengthening critical value chains, especially in key sectors. Such an economic challenge requires clear strategic priorities in order to guide the economic transition. In this context, the Italian plan is particularly relevant since it brings together the largest share of European resources. The essay analyzes in detail the allocation of resources of the Italian NRRP, which—while formally adhering to the European guidelines—fails to address the priorities outlined by the EU-wide industrial strategy. JEL codes: E60, E61, E65

A vision of universalised human freedom, equality, security and democracy emerged in the wake of the Scientific Revolution and the Enlightenment, the British Industrial Revolution, and the French Revolution. This vision, not even approximately practicable at the time, is now well within reach. A viable socialist strategy will not be oriented around an encompassing central plan but rather an agenda of human-centred goals – the creation of preconditions for all individuals to fully realise their personal capacities and to function as free citizens, exercising control individually and collectively, at the workplace and in society. Central to the realisation of such a programme will be a focus on the crucial role played by the first years of life in shaping human development and in the formation of class hierarchies. JEL codes: B51, H40, P16

The paper summarizes the rationale and contents of a conference held at the Accademia Nazionale dei Lincei in December 2020, celebrating the fiftieth anniversary of the Italian Statuto dei lavoratori (Charter of Workers’ Rights): a reform that represents an important advancement in Italian civic development. The paper illustrates the Charter: its attempt to reconcile, in light of the Italian Constitution, the twin and opposite characteristics of labor as sacrifice and as contributing to the social dignity of workers; and the law’s compromises between the opposite needs of the labor process (stability and flexibility of employment, employers’ freedom in hiring, the need to avoid discrimination, and so on). JEL codes: J08, J28, J48, J53, J83

This short editorial introduces the contributions to a special issue celebrating the fiftieth anniversary of the Italian Statuto dei lavoratori (Charter of Workers’ Rights). Such anniversary both reaffirms how crucial workers’ movements have been for the design and implementation of progressive policies in Europe, and—by contrast—highlights current difficulties. JEL codes: J08, J28, J53

The paper offers a brief reconstruction of the varying fortunes of the Charter of Workers’ Rights, interpreted in light of the evolution of economic thinking on the role of the market – especially of the labor market – and on the reversal that has been made of the role of labor policy in relation to macroeconomic policy. It is argued that much of the problems facing our economies today are due to this reversal of roles. The author concludes that industrial relations and the world of work should enter in the remit of industrial policy due to the importance that the accumulation of individual and collective knowedge within firms have for the innovation of companies and the economic system of a country, as well as for reasons of justice.

The Charter of Workers’ Rights was a major achievement of the Italian Socialist Party and of the center-left governments. This article explores some of the factors in the international context that allowed for a period of reforms in Italy. Changes in the policies of the US administration; a difficult leadership succession in the Communist Party of the Soviet Union; the renewal of the Catholic Church thanks to the Vatican Council; and the enlargement of the Italian working class plus the role of the Socialist Minister of Labor must all be given credit for a truly significant piece of legislation. The Charter also contained a vision of the future, of a new society, still to come. JEL codes: J5, K31, Z13