marc lavoie

Sergio Cesaratto On TARGET2 Balances

3 October 2015

Sergio Cesaratto has posted a reply on Matias Vernengo’s blog, replying to a paper by Marc Lavoie on economic problems of the Euro Area For previous discussions, see the citations in that post or see my previous post on this. Marc’s point is that because TARGET2 allows unlimited and uncollateralized credit/debit facilities between Euro Area […]


Reteaching Economics — Marc Lavoie Interview

20 September 2015

This is a nice interview of Marc Lavoie with Marshall Auerback organized by the Institute for New Economic Thinking (INET) in which he talks mainly about his new book Post-Keynesian Economics: New Foundations.


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

14 September 2015

This is a continuation of the post from the end of 2014, although reading that isn’t necessary.  In a new paper, Marc Lavoie continues his debate with Sergio Cesaratto on whether the Euro Area crisis is a balance-of-payments crisis or not. For the sake of completeness, here’s the list of papers, with references copy-pasted from Marc’s […]


Ben Bernanke Embracing Heterodox Ideas

18 July 2015

It’s remarkable how some economists were ahead of the time, while others such as Ben Bernanke seem to just catch up. In a recent post on his blog Ben Bernanke gives out some unorthodox ideas to resolve the Euro Area crisis. Ben Bernanke says: … Germany’s large trade surplus puts all the burden of adjustment on countries […]


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 […]


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 […]


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 […]


Marc Lavoie’s New Book

30 June 2014

Marc Lavoie is out with his new book Post-Keynesian Economics: New Foundations. (Publisher’s site for the book) As per the book’s website, The book is a considerably extended and fully revamped edition of the highly successful and frequently cited Foundations of Post-Keynesian Economic Analysis, published in 1992. It provides an exhaustive account of post-Keynesian economics and of the […]


The Phrase Money Multiplier Itself Is Inaccurate And Misleading

31 March 2014

Some people point out that the critique “there is no money multiplier” is wrong because it is a ratio whatever said. No! The phrase “money multiplier” itself is wrong because the phrase itself captures a wrong causal story. A phrase is a small group of words standing together as a conceptual unit and hence the phrase […]


Nicholas Kaldor On Rational Expectations

29 March 2014

I was recently re-reading an article by Nicholas Kaldor and J. Trevithick [1] and I came across this fine description of rational expectations: The main plank of the monetarist school has hitherto been that inflation is invariably ‘demand induced’: it can result only from an excessive demand for goods which, however, can manifest itself in […]