post-Keynesian Perspective Research Articles

Jesper Jespersen's Macroeconomic methodology: a post Keynesian perspective and Luigi Pasinetti's Keynes and the Cambridge Keynesians: a revolution to be accomplished

Jesper Jespersen's Macroeconomic methodology: a post Keynesian perspective and Luigi Pasinetti's Keynes and the Cambridge Keynesians: a revolution to be accomplished

Um modelo dinâmico de macroeconomia aberta com metas de inflação, conflito distributivo e equilíbrio na conta corrente

O artigo discute, sob uma perspectiva pós-keynesiana, o impacto do regime de metas de inflação sobre o crescimento, a distribuição e a estabilidade em uma economia aberta. O modelo combina a barganha salarial, as variações na capacidade utilizada e o equilíbrio em conta corrente para mostrar que a política monetária tem um impacto real sobre o crescimento e o emprego no longo prazo - i.e. existe um trade-off entre inflação e crescimento. São analisadas as implicações de uma regra de política monetária que leva em conta o equilíbrio em conta corrente. Mostra-se que esta regra poderia ser importante para sustentar a estabilidade no longo prazo, na medida em que evita a possibilidade de aumentos explosivos no estoque da dívida externa.

Labor Market Monopsony

There has been a renewed interest in monopsony in labor markets in recent years that includes both the traditional static approach to monopsony, ably reviewed by Boal and Ransom (1997), and the “new” approach to monopsony with more attention paid to dynamic issues, developed in detail by Manning (2003). The articles presented in this supplement highlight both approaches and illustrate the range of labor market settings in which the exercise of monopsony power may be important. The first use of the term “monopsony” in economics is widely attributed to Robinson (1969). Robinson conceived of monopsony as analogous to monopoly. Whereas monopoly refers to the case of a single seller confronted in a market by many buyers, monopsony refers to the case of a single buyer confronted in a market by many sellers. Just as the monopolist faces a downward-sloping demand curve for his product and

Progresso tecnico, crescita e declino economico in una prospettiva post-keynesiana

Technological Change, Growth and Decline in a Post-Keynesian Perspective - The role of technological change has been investigated in New Growth Theory as in post-keynesian models. In the first approach technological change comes from optimizing behaviour of the agents and, following the growth accounting method, it can be calculated as Solow residual. The modern version of Solow residual is total factor productivity (tfp). Using tfp means to believe that all countries (advanced and less advanced) are on the same production function and that there aren’t any market constraints to growth. An alternative tool, discussed in the paper, to explain differences in economic performances is the augmented technical progress function (atpf). The atpf allows us to account for market constraints that could bite log before supply constraints become operative.

Inovação, Recursos e Comprometimento: Em Direção a uma Teoria Estratégica da Firma

O artigo se insere no esforço, atualmente em curso, de articulação conceitual entre as teorias da concorrência e da inovação forjadas pela teoria econômica Evolucionária e a teoria da firma desenvolvida pela Visão Baseada em Recursos (VBR) na área de gestão estratégica. Ele o faz em três planos: (i) sublinhando a convergência e complementaridade entre as proposições centrais da teoria econômica Evolucionária e a da VBR; (ii) trazendo à luz uma segunda convergência: da relação entre decisões empresariais sob incerteza e seu impacto econômico, associadas à perspectiva pós-keynesiana; (iii) mostrando como os modelos de processos de formação e gestão de estratégias empresariais vêm oferecendo proposições úteis, coerentes e complementares com este mesmo quadro conceitual. A proposição fundamental do artigo é que a referida articulação aponta para uma teoria estratégica da firma centrada nas relações entre concorrência, inovação, competitividade, decisões sob incerteza, comprometimento e busca de liquidez.

Special Forum on Recent Interpretations of Keynes and the General Theory: Contextualising Keynes's Revolution. Review of Michael S. Lawlor's ›The Economics of Keynes in Historical Context‹

First paragraphAs befits the Post-Keynesian perspective of this forum, the books being reviewed here are related to time: Lawlor (2006) deals with antecedents of Keynes’s General Theory; Tily (2007) mainly with what happened to it afterwards. Michael Lawlor has done us an important service, in bringing together in one place the fruit of many years’ work on the origin and evolution of Keynes’s ideas. These ideas are organised into three areas: (1) the economics of employment, (2) speculation (including new work on institutional features: Marshall on the representative firm and joint stock ownership), and (3) ›the shifting equilibrium of a monetary economy‹. The latter category encompasses (a) the theory of money and interest, (b) Sraff aand Hayek on own rates of interest and (c) the essential properties of money. Marshall plays a key role in the story, as is right. Other key figures include Pigou, Hawtrey, and Robertson.

The New Consensus and Post-Keynesian Interest Rate Policy

This paper outlines the fundamental arguments of the New Consensus, critiques it from a Post-Keynesian perspective, and offers a Post-Keynesian alternative to the Taylor Rule. While Post-Keynesian economics provides a theory of endogenous money with exogenous interest rates, it has no clear description of a central bank reaction function. We attempt to remedy this oversight by identifying some of the difficulties attached to developing a Post-Keynesian reaction function, and suggesting an approach to the setting of interest rates that is more consistent than the Taylor Rule with Keynes's General Theory.

Stabilization and Growth in Latin America: A Critique and Reconstruction from Post-Keynesian and Structuralist Perspectives

Stabilization and Growth in Latin America: A Critique and Reconstruction from Post-Keynesian and Structuralist Perspectives

Conflicting Interpretations of the Notion of Liquidity Preference: A Review and Synthesis of Post-Keynesian Perspectives

In this paper I review recent Post-Keynesian debates about the notion of liquidity preference in the context both of Keynes' writings on and after the General Theory and also, modern portfolio theory. First, the paper reviews the Hayek-Sraffa debate to focus on certain issues raised by its protagonists which provide a continuing refrain over the years to follow. In particular, this section dwells on Sraffa's comments about the relationship obtaining between asset prices in the transition from one monetary equilibrium to another. The second section of the paper examines the General Theory, in part through the critical, yet obviously sympathetic eyes of Richard Kahn (1984). At this point, Keynes' views about the influence of equity prices on investment are addressed to demonstrate the appropriateness of a portfolio-based approach to the analysis of liquidity preference effects. The next section of the paper takes off from Kahn's concerns about the instability of the demand for money and liquidity preference schedules. Hyman Minsky (1975) and Victoria Chick's (1983) interpretations of the General Theory are brought together. The aim of this synthesis is to unbundle the workings of both the money and capital markets so that each of the individual effects of fluctuations in liquidity preference can be isolated. Both Minsky and Chick follow Keynes in presuming that the monetary authorities can control the money supply, although each question this presumption at certain points in their respective texts. The implications of money supply endogeneity are examined next, in the context of the debates between Randall Wray (a structuralist) and the Horizontalists, Basils Moore (1988) and Marc Lavoie (1985). At this point, the paper examines the implications for liquidity preference theory, of the growth in interest-earning, highly liquid, short-term instruments which can displace money in both its transactions and store-of-value functions. Paul Davidson's 1994 analysis of spot and flow demand prices is then discussed briefly to foreshadow later arguments about the relationship between flow-demand and long-period prices. Wray's analysis of the manner in which liquidity preference influences the relationship between spot and future prices of assets is also reviewed. This analysis provides the basis for a critique of Karacaoglu's efforts to incorporate liquidity preference effects within a Tobin-style portfolio model. The relationship between short and long run prices again comes to the fore in my discussion of Carlo Panico's long period interpretation of liquidity preference effects. Finally, issues for future research are canvassed.

Book Review: Competition, Technology and Money: Classical and Post-Keynesian Perspectives

Book Review: Competition, Technology and Money: Classical and Post-Keynesian Perspectives

A POST KEYNESIAN PERSPECTIVE ON COMMERCIAL BANK BEHAVIOR AND REGULATION

ABSTRACTThe purpose of this paper is to present a post Keynesian perspective on commercial bank behaviour and regulation. It is assumed that: i) the quantity of loans is endogenous; ii) banks are dual purpose institutions whose functions are to create credit and supply means of payment and liquidity; iii) uncertainty pervades decision making; and iv) banks are price setters in retail markets, but price takers in wholesale markets. The effects of a number of instruments of regulation are analysed including lender of last resort, liquid reserve requirements, deposit insurance, capital adequacy and open market operations.

Financial repression and economic development: towards a post-Keynesian alternative∗

The Shaw–McKinnon framework, the foundation of mainstream thinking on the role of financial markets and institutions in economic development and the basis for policy-making in many LDCs for the last 18 years, is shown to be flawed when viewed in a post-Keynesian perspective. Three interrelated aspects of post-Keynesian theory are used to challenge the financial liberalization models and to posit an alternative post-Keynesian perspective on the role of financial institutions and markets in economic development. These aspects are: (1) the finance-investment-saving-funding circuit; (2) the financial fragility hypothesis; and (3) the evolution of institutions and conventions in an uncertain world.

Population Ageing and Intergenerational Conflict: A Post‐Keynesian View

The author reexamines the relationships among demographic aging, the dependency burden, and intergenerational conflict from a post-Keynesian perspective, in which unemployment and excess capacity are normal to the functioning of capitalist economies, and resources are not generally fully utilized. He "argues that the Keynesian process of national income determination precludes any immediate relationship between population ageing and the 'burden' imposed on income recipients. Below full employment, a rising dependency ratio is not guaranteed to reduce the expenditure share of income recipients or raise their tax rates. An exclusive emphasis on intergenerational conflict can give a misleading impression of the consequences of population ageing." The focus is on developed countries.

Towards a post-Keynesian Welfare economics

This article has two objectives. First, I raise the issue of whether we still need to bother with welfare economics. The increased acceptance of ideas from the new right with its strong criticism of state intervention makes this a valid question to pose. It is argued that post-Keynesians' concerns with uncertainty may form the basis of a valid counter to these new-right arguments. Secondly, I consider the possibility of there being a specifically post-Keynesian perspective on welfare economics. It is argued that this perspective favours egalitarian activism.