Naked Keynesianism

Simple Math, Macri + IMF = Poverty The Argentine economy is on the verge of another default less than two decades after the last one, in 2002. The forthcoming elections, in October 27, will most likely bring back the Kirchnerist opposition back to power, and they will have to negotiate with the International Monetary Fund (IMF), that has the power to prevent a crisis.Argentina has a long and turbulent history with the IMF that dates back to the country’s entry in the organization in 1956...

Thirlwall and McCombie The new issue of ROKE is out. Three papers are freely downloadable (linked below). Check it out!Thirlwall's law at 40 by Esteban Pérez Caldentey and Matías VernengoWhy Thirlwall's law is not a tautology: more on the debate over the law by J.S.L. McCombieThoughts on the balance-of-payments-constrained growth after 40 years by A.P. Thirlwall

[embedded content] Full transcript of the short interview here. Paper was linked before. Note that we say that Functional Finance does apply to developing countries, but that the insistence of the advantages of flexible exchange rates, as opposed to managed regimes with capital controls, are not correct.

So the RWER has a whole issue on Modern Money Theory (MMT). I haven't read the whole thing yet (barely started). At nay rate on that later. Whole issue can be downloaded here. Enjoy!

Paper has been published as a PERI Working Paper.From the abstract: Functional finance is only one of the elements of Modern Money Theory (MMT). Chartal money, endogenous money and an Employer of Last Resort Program (ELR) or Job Guarantee (JG) are often the other elements. We are here interested fundamentally with the functional finance aspects which are central for any discussion of fiscal policy and have received more attention recently. We discuss both the limitations of functional...

By Sunanda Sen (Former Professor, Jawaharlal Nehru University; Guest Blogger)That the Indian economy is currently experiencing a slowdown is more than evident, both with the deliberations in different private circles and with official statements signalling a series of remedial measures , mostly focused on the ailing financial sector! However, as we point out, the ailing Indian economy has concerns that go beyond flagging GDP growth and the ailing financial sector. Downturn in the economy ...

Esteban Pérez Caldentey has just published a new book on Roy Harrod for the collection edited by Anthony Thirlwall. From the description: This landmark book describes and analyzes the original contributions Sir Roy Harrod made to fields including microeconomics, macroeconomics, international trade and finance, growth theory, trade cycle analysis and economic methodology. Harrod’s prolific writings reflect an astounding and unique intellectual capacity, and a wide range of interests. He...

Argentina's peso depreciated significantly after the primary elections last month, with the clear victory of the opposition. The crisis has come full circle now with the re-imposition of capital controls, and with the default on domestic bonds, the latter a puzzling and clearly unnecessary measure, since it was in domestic currency (Standard & Poor's says it's a selective default, whatever that means, and Fitch called it a restricted default). So here a few things that might be useful...

No pressure! By Thomas Palley (guest blogger)The case for central bank independence is built on an intellectual two-step. Step one argues there is a problem of inflation prone government. Step two argues independence is the solution to that problem. This paper challenges that case and shows it is based on false politics and economics. The paper argues central bank independence is a product of neoliberal economics and aims to institutionalize neoliberal interests. As regards economics,...

I'll be in Mexico, with a group of distinguished local economists for this event. In Spanish, but very likely it will be streamed. Will post more about it.