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An estimation of the Italian banking sector profit rate in a crisis period Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2024-02-29 Riccardo Zolea
In this paper an attempt is made to calculate the profit rate of the banking sector in the period following the 2007–2008 financial crisis, in order to compare it with that of other real productive...
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The past is only prologue – not the future: response to my critics Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2024-01-17 Donald W. Katzner
This is my response to criticisms of my paper
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Sectoral dynamics of industrial policy in a two-sector economy: the case of Korea’s heavy and chemical industry (HCI) promotion (1973–1979) Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-12-22 Joseph Chul-kyoo Jung
This study explores the impact of state’s industrial policy on sectoral capacity utilization and growth in total output in the context of the Korea’s Heavy and Chemical Industry (HCI) promotion (19...
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Austrian vs Post Keynesian explanations of the business cycle: an empirical examination Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-30 John T. Harvey, Khanh Pham
Neoclassical economists posted many mea culpas after they completely missed the Financial Crisis of 2008. Some heterodox schools of thought, however, claimed to have seen it coming. Among these wer...
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Labor cost, competitiveness, and imbalances within the eurozone Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-30 Loïck Tange
This paper examines the impact of the cost of labor on macroeconomic imbalances within the eurozone. For this purpose, we construct a three-country Stock-Flow Consistent (SFC) macroeconomic model i...
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Comparative economic analysis vs moralistic tales: an application to the myth of frugality Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-13 Juan Rafael Ruiz
In 2020 the European Union designed a stimulus programme aimed at supporting Member States’ economic recovery following the outbreak of the Covid-19 pandemic. Several countries were reluctant to en...
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The temporal dimensions of policy responses to capital surges Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-13 Chokri Zehri, Latifa Saleh Iben Ammar, Wissem Ajili Ben Youssef, Fatma Zehri
We demonstrate that country-specific conditions and policies that can help manage the risks of excessive capital flows behave differently over time. Employing instrumental variable quantile regress...
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Secular stagnation and monopoly capitalism Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-01 Malcolm Sawyer
The paper opens with a brief review of economic growth in industrialized economies over the past four decades, indicating a general slow-down in growth. This is followed by a brief review of the ma...
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Editors’ Corner Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-01 Jan Kregel
Published in Journal of Post Keynesian Economics (Vol. 46, No. 4, 2023)
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Introduction for the special issue for Tracy Mott Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-01 Yavuz Yaşar, Mark B. Lautzenheiser
Published in Journal of Post Keynesian Economics (Vol. 46, No. 4, 2023)
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Inflation and distribution during the post-COVID recovery: a Kaleckian approach Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-01 Mark Setterfield
The early stages of recovery from the recession induced by the COVID-19 pandemic were accompanied by a marked increase in inflation in the US and elsewhere. Much has been made of this outcome, and ...
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Post-Keynesian liquidity preference theory four decades later: a reexamination Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-01 L. Randall Wray
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 fires...
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Tracy Mott’s understanding of Kalecki’s economics Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-01 Jan Toporowski
Following his death in 1970, interest in Kalecki’s economics has come to be confined to Post-Keynesian circles and discussions of political economy. In general, these have provided partial accounts...
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An analysis of UK swap yields Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-01 Tanweer Akram, Khawaja Mamun
John Maynard Keynes argued that the central bank influences the long-term interest rate through the effect of its policy rate on the current short-term interest rate. However, Keynes’s claim was co...
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Government spending with increasing risk: sovereign debt, liquidity preference, and the fiscal-monetary nexus Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-01 Nina Eichacker
During financial and economic crises, government expenditure is a potential source of liquidity and replacement for private demand; this expenditure, in turn, generates more deposits and spending i...
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The role of money and financial institutions in Kalecki and Keynes Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-11-01 Noemi Levy-Orlik
Numerous discussions on money and financial institutions have been advanced both between and within economic theories. Heterodox schools of thought consider money to be non-neutral, with causality ...
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Aggregate demand uncertainty outbreaks and employment hysteresis in G7 countries Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-10-19 Paulo R. Mota
The slow recovery following the recent financial crisis in many developed countries, and the predictable long lasting economic effects of the Covid-19 pandemic have raised a new interest on the top...
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Post-Keynesian economics and social policy: equality of opportunity or equality of place? Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-09-28 Camilo Andrés Guevara Castañeda
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...
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Inflation stabilization and normal utilization Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-09-07 Thomas R. Michl
Abstract This paper presents a model of inflation and distribution that examines the relationship between the employment of labor and the utilization of capital. It features a structural difference between the wage Phillips curve and the price Phillips curve that gives rise to persistent changes in the real wage whenever the inflation-neutral level of activity fails to utilize the existing capital
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Social processes of oppression in the stratified economy and Veblenian feminist post Keynesian connections Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-09-07 Zdravka Todorova
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 stratif...
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Financialization, financial assets and productive investment in Latin America: evidence from large public listed companies 1995–2015 Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-08-07 Nicolas Hernán Zeolla, Juan E. Santarcángelo
Abstract Using firm-level data from public listed large non-financial corporations (NFC) this paper studies the impact of financialization on productive investment in Latin America in the last two decades. After considering the main stylized facts on investment, profits and financial incomes from balance sheet information, we estimate an econometric model of investment determinants to measure the impact
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Does the Secular Stagnation hypothesis match the data? Evidence from the USA Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-08-04 Andrea Borsato
Abstract This paper focusses on Secular Stagnation in the United States. It answers to two research questions. First: is Secular Stagnation a fact? Second: conditional to the previous reply, how does the literature meet the qualitative and quantitative evidence? I focus on historical annual data related to the USA from 1870 onwards. The contribution to the debate is manifold. Firstly, I provide a careful
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Editors’ Corner Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-08-01
Published in Journal of Post Keynesian Economics (Vol. 46, No. 3, 2023)
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Public social services and sustainable development: estimating opportunities in the global south Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-07-03 Celia Lessa Kerstenetzky, Marcio Alvarenga Junior, Lucas Costa, Ricardo Bielschowsky
In this article, which seeks to check the supposed potential of public social services to promote sustainable and equitable well-being, we assess, on the one hand, the magnitude of unmet social nee...
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Seismic shifts in economic theory and policy: From the Bernanke Doctrine to Modern Money Theory Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-06-27 Pavlina R. Tcherneva, Eric Tymoigne
Abstract This paper evaluates the relationship between monetary and fiscal policy and the relative effectiveness of macroeconomic stabilization through the lens of Modern Money Theory (MMT). We articulate previously-neglected aspects of monetary sovereignty to offer a new interpretation of the Bernanke Doctrine that emerged in the wake of the 2008 Global Financial crisis. This Doctrine validated key
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Rethinking productivity: the crucial role of demand Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-06-15 Don J. Webber, Gissell Huaccha
Building on the macroeconomic Cambridge capital controversies and issues regarding capital reversal, this article develops a novel microeconomic way of understanding productivity figures and demons...
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Fiscal expansion, government debt and economic growth: a post-Keynesian perspective Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-06-15 Pintu Parui
Constructing a post-Keynesian macro-model, we investigate the impact of fiscal expansion on aggregate demand and economic growth, explore public debt sustainability, and analyze whether fiscal poli...
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“To give additional credit to this paper”: the Lower Canada Army Bills and provisioning the state during the War of 1812 Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-04-27 Corey Leore
Abstract This article seeks to provide insight into the history and acceptance of paper money within British North America by examining the state money issued by Lower Canada’s civil government and the British Army during the War of 1812. Prior to the war, British North America was suffering from a specie shortage that was further exacerbated by the need for significant expenditure increases to provision
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Militarization, gender inequality, and growth: a feminist-Kaleckian model Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-04-21 Adem Yavuz Elveren
Abstract While some economic models exist on the nexus of military spending and economic growth, and comprehensive theory on the mechanisms through which militarization affects gender inequality, there are no structural models to show how military spending affects economic growth through gender inequality. This paper introduces a feminist-Kaleckian model to examine this mechanism. The main implication
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The effectiveness and risks of expansive monetary policy under financialization Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-02-27 Sara Feiner Solís
Abstract This paper incorporates low interest rates into a framework of post Keynesian theory of the firm under financialization and uses Compustat data to provide an empirical analysis of firm behavior in the eurozone for the period 2000–2018. It reasons that expansive monetary policy targeting low interest rates will only be effective in promoting investment in a scenario where shareholder value
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Convergence on inflation and divergence on price control among post Keynesian pioneers: insights from Galbraith and Lerner Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-02-22 Alexandre Chirat, Basile Clerc
This article proposes a historical and analytical reconstruction of a debate that never happened between John Kenneth Galbraith and Abba Lerner over the issue of price controls. While they adopted ...
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Building blocks of a heterodox business cycle theory Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-02-21 Robert Calvert Jump, Engelbert Stockhammer
Abstract A key characteristic of heterodox theories of the business cycle is their focus on endogenous business cycle mechanisms. This paper provides an overview and comparison of four models in heterodox business cycle theory: multiplier-accelerator models, Goodwin models, Minskyan debt-cycle models, and momentum trader models. A representative model from each theory is formulated as a two-dimensional
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Household debt, knowledge capital accumulation, and macrodynamic performance Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-02-09 Laura Barbosa de Carvalho, Gilberto Tadeu Lima, Gustavo Pereira Serra
Motivated to some extent by the empirical significance of student loans in the U.S., this paper incorporates knowledge capital formation by working households financed through debt to a demand-led ...
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Two theories of endogenous money: an empirical study of Korea Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-02-01 Wonik Park
Abstract This study tests Korea’s two endogenous money supply channels: the accommodationist and structuralist channels. The main analytic tools are the Fully Modified OLS, Maki’s structural break test, Error Correction Model, and Impulse Response Function (IRF) analysis. The primary purpose of this study is to propose analytical methods to compare the two endogenous money supply channels. The analytic
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Bank capital regulation and the Modigliani-Miller Theorem: a Post-Keynesian perspective Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-01-23 George Dotsis, Konstantinos Loizos
Abstract This paper challenges the validity for bank regulation of the Modigliani-Miller (MM) Theorems. We argue that the Modigliani–Miller analysis cannot be applied to banks because when lending creates deposits the asset side of banks varies together with the liability side and equity behaves more like a sticky variable. Hence, from an endogenous money point of view and Minsky’s Financial Instability
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Modern post-Keynesian approaches: continuities and ruptures with monetary circuit theory Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2023-01-23 Éric Berr, Virginie Monvoisin
Abstract Stock-flow-consistent models (SFC) and modern monetary theory (MMT) are growing in popularity. Both are part of post-Keynesian theory and provide it with a modeling tool for the former and political proposals for the latter. However, these new modern post-Keynesian approaches share features with monetary circuit theory: their accounting framework, the hierarchy of agents and economic flows
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Announcement Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-12-12
Published in Journal of Post Keynesian Economics (Vol. 45, No. 4, 2022)
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Fiscal sustainability under a paper standard: two paradigms Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-11-17 Andrea Terzi
Abstract This paper investigates the theoretical foundations of fiscal sustainability and the policy prescription that when the trajectory of public debt is above a certain threshold, priority should be given to fiscal consolidation. The author contends that the assumption that the government sector is subject to an intertemporal budget constraint can be validated only within a real-exchange economy
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International financial integration and economic growth in developing and emerging economies: an empirical investigation Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-11-14 Samuel Costa Peres, André Moreira Cunha, Luiza Peruffo
Abstract This paper explores the relationship between international financial integration (IFI), external vulnerability and economic growth. It proposes a taxonomy of typical IFI profiles and applies it to a sample of 90 developing and emerging economies (DEEs) for the 1992–2016 period using a dynamic panel data model. Drawing from a Post Keynesian and Structuralist analytical framework, it argues
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The Baran Ratio, investment, and British economic growth and development Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-10-31 Thomas E. Lambert
Abstract Investment in capital, new technology, and agricultural techniques has not been considered an endeavor worthwhile in a medieval economy because of a lack of strong property rights and no incentive on the part of lords and barons to lend money to or grant rights to peasant farmers. Therefore, the medieval economy and standards of living at that time often have been characterized as non-dynamic
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Empirical analysis of the financial fragility of Russian enterprises using the financial instability hypothesis Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-10-31 Elena Perepelkina, Ivan Rozmainsky
Abstract This paper conducts an empirical analysis of the financial instability hypothesis on Russian data. The main literature on this topic has been reviewed, and two financial fragility indexes—developed by Mulligan and by Torres Filho with coauthors—to determine whether Russian firms are in a hedge, speculative or Ponzi regime are used. To do empirical analysis, 371 Russian firms from nine industries—Agriculture
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Household debt, student loan forgiveness, and human capital investment: a neo-Kaleckian approach Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-10-17 Gustavo Pereira Serra
Abstract This paper aims to analyze the sustainability of student debt in the US. For this purpose, I build a neo-Kaleckian model in which households can borrow to either consume or invest in human capital. Next, I calibrate the model using US data to simulate the economic effects of specific policies such as student loan forgiveness. To my knowledge, this is the first study that considers household
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The nature of money under a commodity standard: exogenous or endogenous? Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-10-17 Germán David Feldman
Abstract The aim of the present article is to discuss the nature of money under a commodity standard. The notion of money supply endogeneity, endorsed by Post-Keynesian (PK) scholars within the institutional framework of modern credit economies, is extended to the case of a gold standard regime by recourse to the view of early classical economists, which highlights the endogenous determination of the
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The effect of expectations on the Brazilian Central Bank’s policy rate Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-08-11 Fábio Henrique Bittes Terra, Cleomar Gomes
Abstract This article investigates how expectations influence the determination of the Brazilian benchmark interest rate based on Keynes’ views on the relationship between expectations and monetary policy. Then, as empirical methodology, Autoregressive Distributed Lag Models and Bounds Testing Approach to Cointegration are used to study, in the short and long-run, the connection between expectations
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Measuring green jobs through fuzzy logic: aimed at environmental conservation and socio-economic stability and inclusion Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-08-10 Natália Bracarense, Paulo Bracarense Costa
Abstract The western model of development is experiencing a generalized crisis manifested by economic, political, ecological and sociological worldwide instabilities and heated popular responses sparking in several points of the globe. As illustrated by Kate Raworth in Doughnut Economics, 13% of the world population lives in a situation of food insecurity and 19% lives without electricity, meanwhile
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A refundable tax credit for children: its impact on poverty, inequality, and household debt Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-08-08 Steven Pressman, Robert Haywood Scott III
Abstract Households with children face burdens that households without children don’t face. Besides food, clothing, shelter and healthcare, childcare can easily run several thousand dollars each year. Historically, US economic and social policies have done little to help families with children. Until 2018, families with children were helped indirectly through tax exemptions for children and some child
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Endogenous exchange rates in empirical stock-flow consistent models for peripheral economies: an illustration from the case of Argentina Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-08-08 Sebastian Valdecantos
Abstract In recent years there has been an increase in empirical SFC models applied to specific countries to address a broad range of research questions. However, in most cases, the exchange rate has been modeled as exogenous. This prevents the analysis of both the multiplicity of channels through which the global financial cycle impacts economies and the effects that the different tools of domestic
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Distribution and demand in Brazil: empirical evidence from the structural and aggregative approaches Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-07-28 Felipe Orsolin Teixeira, Fabricio José Missio, Ricardo Dathein
Abstract This paper examines the relationship between functional income distribution, aggregate demand and capacity utilization for the Brazilian economy between 2000 and 2015. Therefore, we take on two different theoretical perspectives in the empirical exercises: (i) under the structural perspective, we analyze the effects of the wage share on the components of aggregate demand; and (ii) from an
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Does inflation targeting increase income inequality? Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-07-28 Yener Altunbaş, John Thornton
Abstract We contribute to the growing empirical literature on the impact of monetary policy on income distribution by focusing on the impact of adopting an inflation targeting (IT) regime to guide monetary policy. We assess the impact employing a panel of 121 advanced and developing economies, including 27 IT adopters, during the period 1971–2015. Our results suggest that IT adoption has contributed
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Apparent micro-realism in mainstream orthodox economics Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-07-20 Joaquim Vergés-Jaime
Abstract As reiterated for a long, mainstream economics mainly relies upon a set of unrealistic axioms and deductive assumptions, which, nevertheless, are what underpins its core postulates. They are unnecessarily unrealistic assumptions, mainly because the empirical evidence for contrasting them is as overwhelming as old. Even the claim for (returning to) realism in economics is already old within
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More fiscally responsible: Democrat or Republican presidents? Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-07-18 Peter N. Hess
Abstract Evidence is reviewed that national economic performance generally has been better under Democrat presidents. It is likely, but not necessarily true, however, that better economic performance is related to greater fiscal responsibility. A brief history of federal budget deficits and the gross federal debt for the last seven decades is followed by discussion of why federal budget deficits matter
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Abductive analogies between Keynes’ monetary-production economics and Einstein’s theories of relativity Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-07-18 Jakob Pedersen
Abstract In this paper, it is argued that there exist different interdisciplinary abductive analogies between Keynes’ monetary-production theory and Einstein’s theories of relativity. Based on some of the equations in Einstein’s special theory of relativity vis-à-vis the fundamental equation describing the equilibrium condition in Keynes’ model version of a realistic entrepreneur economy—a complementary
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Offshoring via vertical FDI in a long-run Kaleckian Model Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-07-07 Ryan Woodgate
Abstract This paper develops a two-country Kaleckian model in which “Northern” firms invest a fixed fraction of total investment in foreign affiliates in the low-wage “South” in order to offshore the production of intermediate goods over time. On the back of this setup follows an analysis of the macroeconomic implications of offshoring in the short and long run. Offshoring through vertical FDI is found
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The global financial cycle and external debt: effects on growth and distribution in emerging and developing economies Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-06-15 Pablo Bortz, Gabriel Michelena, Fernando Toledo
Abstract The global financial cycle (GFCy), driven by international monetary conditions and global risk perceptions, is a major driver of capital flows to and out of emerging and developing economies (EDEs), reflected in external indebtedness. This paper analyzes the impact of the GFCy on the economic performance of EDEs borrowing in international markets. Rising external borrowing generates appreciating
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Lost in consolidation? Declining public investment, multiplier effects and alternatives to the path of fiscal consolidation in Portugal Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-06-02 Vicente Ferreira
Abstract This paper deals with one of the most pressing concerns that Eurozone periphery economies will face in the near future: how to achieve a sustained recovery from the COVID-19 crisis while dealing with growing public debt-to-GDP ratios. The paper assesses the macroeconomic relationship between public spending, economic growth and debt sustainability. We use a TSLS method to perform the econometric
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Remembering Geoff Harcourt (1931–2021): a post-Keynesian pioneer Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-05-31 Selwyn Cornish, John Hawkins
Abstract Geoff Harcourt was esteemed for the quality of his prolific scholarship. He was a pioneering post-Keynesian economist who specialized in capital theory. But he also wrote on many other theoretical areas as well as contributing to policy debates and writing intellectual biographies. In addition to his published work, he made a remarkable contribution as a teacher and mentor, encouraging, supporting
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Link between private debt and public surplus in Spain Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-05-16 Eduardo Garzón Espinosa, Bibiana Medialdea García, Esteban Cruz Hidalgo, Carlos Sánchez Mato
Abstract Throughout recent history, the Spanish economy registered a fiscal surplus only between 2005 and 2007. Analysts agree that this surplus was a product of the extraordinary economic growth, but they often fail to notice that it was based on similarly exceptional growth in private debt, which was a necessary condition for achieving fiscal surplus. This finding can be illuminated from the vantage
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Estimation of a long run regime for growth and demand through different filtering methods Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-05-05 Joana David Avritzer
Abstract This paper discusses the possibility of estimating a long run relationship between income distribution and growth. As emphasized by Blecker, the neo-Kaleckian empirical literature has focused on the estimation of a short run relationship. This paper contributes to the debate by looking at a long term relationship through the use of filtering methods. We first estimate the long run component
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Capital productivity and the decreasing wage share in the United States: a Keynesian Approach Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-05-02 Carles Manera, Ferran Navines, Jose Pérez-Montiel, Javier Franconetti
Abstract We argue that in the US there is a causal relationship running unidirectionally from negative shocks in capital productivity to negative variations in the wage share. We sustain that, faced with a capital productivity decrease, the US firm sector pushes wages down to maximize the rate of profit. Through asymmetric SVAR techniques that are robust to endogeneity and structural breaks; we show
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Technology and productivity: a critique of aggregate indicators Journal of Post Keynesian Economics (IF 0.753) Pub Date : 2022-01-31 Fred Block
Abstract Economic analysts have used trends in total factor productivity (TFP) to evaluate the effectiveness with which economies are utilizing advances in technology. However, this measure is problematic on several different dimensions. First, the idea that it is possible to separate out the relative contribution to economic output of labor, capital, and technology requires ignoring their complex