gennaro zezza

Fiscal Conservatism, Weak International Trade Performance And Income Inequality Not Good For The U.S. Economy

15 May 2015

The US economy is only 8.8 percent above the pre-crisis peak. The Levy Institute has a new Strategic Analysis publication titled Fiscal Austerity, Dollar Appreciation, And Maldistribution Will Derail The US Economy in which they identity three main structural characteristics of the economy of the United States that stand in the way of the recovery: (1) […]


Private Indebtedness In CBO’s Forecasts

29 April 2012

Michael Stephens of the Levy Institute highlights the recent Levy Institute Strategic Analysis: Back To Business As Usual? Or A Fiscal Boost? in a post Where Will US Growth Come From If Austerity Reigns on the Institute’s blog Multiplier Effect.  According to the authors Dimitri Papadimitriou, Gennaro Zezza and Greg Hannsgen, The results of our simulation […]


Seven Unsustainable Processes – Original

18 April 2012

Of all the economists, Wynne Godley had the rarest of rare ability to model and imagine the economic dynamics of the whole world. “… a full macroeconomic model in his head, which, by some sort of subconscious process, he computed.” as his obituary from FT said. In the recent INET conference paper, Dirk Bezemer discusses Wynne […]


The Un-Godley Private Sector Deficit

24 February 2012

Economists worry too much about the government’s deficit although they seem to not know about the private sector deficit. Goldman Sachs’ chief economist Jan Hatzius came to know about the sectoral balances approach and called the difference between United States’ private expenditure and income in “The Un-Godley Private Sector Deficit”. He later included the sectoral balances […]


Books In Honour Of Wynne Godley

4 January 2012

There are two new books in honour of Wynne Godley and they are out now The first one – edited by Marc Lavoie and Gennaro Zezza – has selected articles and papers by Wynne Godley, and carefully chosen. It’s available at, but not yet on Here’s the book’s website on Palgrave Macmillan and […]


r < g Or DEF < g ?

12 August 2011

It is frequently asserted by some economists and even some Post-Keynesians that as long as the effective interest rate paid on stocks of debt is less than the growth rate, stock-flow-norms do not keep rising forever. That is, ratios such as public debt/gdp, external debt/gdp do not rise forever at full employment if this condition is […]