John McCombie Reviews Marc Lavoie’s Post-Keynesian Economics: New Foundations

13 December 2014

John McCombie is one of my favourite economists. He is the co-author of the book Economic Growth And The Balance-Of-Payments Constraint, one of the most supremely insightful books. McCombie has written a review of Marc Lavoie’s book Post-Keynesian Economics: New Foundations, which is the second edition of his book titled Foundations of Post-Keynesian Economic Analysis. He […]

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Economists Without Borders (Economistes Sans Frontières)

25 November 2014

by Thomas Palley Inspired by the work of Doctors Without Borders (Médecins Sans Frontières), I have recently started a project called Economists Without Borders (Economistes Sans Frontières). Its purpose is to inoculate the global economy against the virus of neoliberalism. Last week, I had two difficult “missions” to Vienna and Warsaw. In Vienna, I confronted […]

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Strong Assertions: Reply To A Comment [Update 2]

18 November 2014

I don’t generally publish comments and reply offline via email but this one needed one on the blog. Winterspeak commented on my previous post Strong Assertions: Deliberate obtuseness ramanan? A 15% interest rate will certainly reduce borrowing as a first order effect, but it will also have another first order effect which will move AD […]

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Strong Assertions

14 November 2014

In a recent article (from last month), Warren Mosler makes strong claims. He says: I reject the belief that economy is strong and operating anywhere near full employment. I also reject the belief that a zero-rate policy is inflationary, supports aggregate demand, or weakens the currency, or that higher rates slow the economy and reduce […]

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Thomas Palley — Rethinking Wage Vs. Profit-led Growth Theory With Implications For Policy Analysis

13 November 2014

Thomas Palley has a new paper titled Rethinking Wage Vs. Profit-led Growth Theory With Implications For Policy Analysis. Abstract: The distinction between wage-led and profit-led growth is a major feature of Post-Keynesian economics and it has triggered an extensive econometric literature aimed at identifying whether economies are wage or profit-led. That literature treats the economy’s character […]

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IMF’s World Economic Outlook On Global Imbalances

30 September 2014

The IMF has released a couple of chapters from its upcoming World Economic Outlook. There is one chapter Are Global Imbalances At A Turning Point, which talks of not just “flow imbalances” (current account deficits/surpluses) but also “stock imbalances” (international investment positions). There is a nice table with a lot of information (although it is interested […]

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Credit And Economic Growth

17 September 2014

In a new column for Bloomberg, Noah Smith questions the intuition that credit fuels economic growth. In which I question the most cherished belief of every economics writer in the Universe: http://t.co/3WRGjcGZXE — Noah Smith (@Noahpinion) September 16, 2014 He says: It seems like the only people who don’t instinctively believe in credit-fueled growth are […]

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Thomas Palley — The Theory Of Global Imbalances: Mainstream Economics Vs. Structural Keynesianism

26 August 2014

Thomas Palley has a new paper on global imbalances. It tells the story of how “the economics profession has been a gung-ho supporter of neoliberal globalization, using the rhetoric of free trade.” and how its narrative has changed over the years to keep the rhetoric intact. From the abstract: Prior to the 2008 financial crisis there was […]

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Thomas Palley — New Keynesianism As A Club

28 July 2014

Thomas Palley has a new blog post detailing how much recent new Keynesian theory is a rediscovery of ideas developed by old Keynesians and Post Keynesians over the past thirty years and that new Keynesians persistently fail to acknowledge that precedence. New Keynesianism as a Club Club, noun. 1. An association or organization dedicated to a particular […]

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ROKE Issue On Steve Keen’s Notion Of Aggregate Demand

22 July 2014

The new issue of ROKE (Review of Keynesian Economics) is online with a few articles available free for some time. Marc Lavoie, Thomas Palley and Brett Fiebiger comment on Keen’s notion of aggregate demand. Marc Lavoie’s article A comment on ‘Endogenous money and effective demand’: a revolution or a step backwards? is available here. Steve Keen’s […]

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