Anthony Thirlwall’s New Book On Keynesian And Kaldorian Economics

28 January 2015

During the global economic and financial crisis Keynes became popular again but Nicholas Kaldor’s ideas and the mention of the man himself didn’t take off as much. It’s unfortunate, as Kaldor played a huge role in the development of Keynesian economics itself. Kaldor’s own ideas are a subject of its own. Anthony Thirlwall is releasing […]

READ MORE >>

JKH On Paul De Grauwe’s Fiscal Arithmetic

21 January 2015

In a recent article for VOX, Paul De Grauwe and Yuemei Ji write about potential fiscal effects of a possible asset purchase program by the Eurosystem (European Central Bank and the National Central Banks in the Euro Area). In that the authors take an extreme stand suggesting that a default by a Euro Area government […]

READ MORE >>

The Devil Is In The Detail

15 January 2015

There are two ways in which the terminology “net lending” is used. In national accounts, it is the difference between saving and investment for any economic unit or a sector. “S − I”. It is the financial surplus. Bankers and central bankers use “net lending” a bit differently. Here there is “netting” when redemptions are netted.  For example, suppose […]

READ MORE >>

New Book: The Encylopedia Of Central Banking

10 January 2015

Via ROKE’s Facebook page: Post by Review of Keynesian Economics. (I have two articles on this: Open Mouth Operations and Reflux Mechanism, the latter co-authored with Louis-Philippe Rochon.)

READ MORE >>

Keynesian Economics And Thievery

23 December 2014

In a WSJ opinion piece titled An Autopsy for the Keynesians, John H. Cochrane makes the following accusation on Keynesian Economics: By Keynesian logic, fraud is good; thieves have notoriously high marginal propensities to consume. Cochrane’s piece reads as assertions after assertions trying to prove that fiscal policy is impotent. Keynesians emphasize the role of effective demand […]

READ MORE >>

Sergio Cesaratto’s Debate With Marc Lavoie On Whether The Euro Area Crisis Is A Balance-Of-Payments Crisis

22 December 2014

Sergio Cesaratto has a new paper Balance Of Payments Or Monetary Sovereignty? In Search Of The EMU’s Original Sin – A Reply To Lavoie. (html link, pdf link) I obviously agree with Sergio Cesaratto. As long as there is no supranational fiscal authority, a Euro Area nation’s economic success is more restricted by its exports than otherwise […]

READ MORE >>

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 […]

READ MORE >>

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 […]

READ MORE >>

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 […]

READ MORE >>

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 […]

READ MORE >>