Thomas Palley: Economics for Democratic and Open Societies

NIRP is quickly becoming a consensus policy within the economics establishment. This paper argues that consensus is dangerously wrong, resting on flawed theory and flawed policy assessment. Regarding theory, NIRP draws on fallacious pre-Keynesian economic logic that asserts interest rate adjustment can ensure full employment. That fallacious logic has been augmented by ZLB economics which [...]

This paper examines the relationship between inequality and growth in the neo-Kaleckian and Cambridge growth models. The paper explores the channels whereby functional and personal income distribution impact growth. The growth – inequality relationship can be negative or positive, depending on the economy’s characteristics. Contrary to widespread claims, inequality per se does not impact growth [...]

Hundreds of thousands of Brazilians have called for the ouster of President Dilma Rousseff and Chinese buyers are trying to secure Starwood hotels with a $12.8 billion dollar buyout offer; Ameera David weighs in. Then, Bianca Facchinei takes a look at how the refugee crisis impacted this weekend’s regional elections in Germany. Afterwards, RT’s Manuel Rapalo reports on the Department of Justice setting its eyes on WhatsApp. After the break, Edward Harrison sits down with...

Hundreds of thousands of Brazilians have called for the ouster of President Dilma Rousseff and Chinese buyers are trying to secure Starwood hotels with a $12.8 billion dollar buyout offer; Ameera David weighs in. Then, Bianca Facchinei takes a look at how the refugee crisis impacted this weekend’s regional elections in Germany. Afterwards, RT’s Manuel Rapalo reports on the Department of Justice setting its eyes on WhatsApp. After the break, Edward Harrison sits down with Thomas Palley –...

Paul Krugman has a new op-ed (“A Protectionist Moment?”) in which he tries to walk away from his own contribution as an elite trade economist to the damage done by globalization, while also continuing to lend his political support to Hillary Clinton and the neoliberal globalization wing of the Democratic Party. His article inadvertently spotlights [...]

This paper explores zero lower bound (ZLB) economics. The ZLB is widely invoked to explain stagnation and it fits with the long tradition that argues Keynesian economics is a special case based on nominal rigidities. The ZLB represents the newest rigidity. Contrary to ZLB economics, not only does a laissez-faire monetary economy lack a mechanism [...]

By Thomas Palley, Louis-Philippe Rochon and Matías Vernengo This year marks two important anniversaries in macroeconomics: the 80th anniversary of the publication of Keynes’s The General Theory of Employment, Interest and Money, and the 70th anniversary of Keynes’s premature death, at the age of 63. To mark these anniversaries, the first issue of the fourth year [...]

October’s employment report was strong with regard to both jobs and wages, which is good news. But the report also reveals the contradictions in our economy. Good news for Main Street is interpreted as bad news by Wall Street. The challenge for the Federal Reserve, and the standard by which it will be judged, is [...]

FMM Conference The Spectre of Stagnation? Europe in the World Economy Introductury Lecure on heterodox economics - Tom Palley This Keynote is about: Introduction to Post-Keynesian Economics Description of the Conference: While the Great Financial Crisis has left its mark almost everywhere in the world economy, its regions have taken different paths in the aftermath. Europe, in particular, still suffers a prolonged slump with vast levels of unemployment and outright deflation posing a...

FMM Conference The Spectre of Stagnation? Europe in the World Economy Introductury Lecure on heterodox economics - Tom Palley This Keynote is about: Introduction to Post-Keynesian Economics Description of the Conference: While the Great Financial Crisis has left its mark almost everywhere in the world economy, its regions have taken different paths in the aftermath. Europe, in particular, still suffers a prolonged slump with vast levels of unemployment and outright deflation posing a...