Naked Keynesianism

The Summer School is at the same time than the Annual Meetings of the History of Economics Society, and it is sponsored by ROKE.

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New paper by Esteban Pérez. From the abstract: This paper argues that QE led to significant changes in the global financial system, which, are not conducive to greater financial stability. Through a policy of reserve accumulation, QE disconnected base money from the money supply and deposits from loans. Jointly with the deleveraging process of global banks, QE contributed to restrain the supply of bank credit growth throughout the world. Also global banks continued to expand their trading...

By Tom Palley. From the abstract: Money is at the center of macroeconomics, which makes understanding the money supply central for macroeconomic theory. this paper presents the Post Keynesian theory of endogenous money supply and shows how it is fundamentally different from the conventional money supply theory. the conventional approach relies on the money multiplier and bank lending is invisible. Post Keynesian theory discards the money multiplier and focuses on bank lending which drives...

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[embedded content] Panel at the Eastern Economic Association Meeting with Robert Blecker, Orsola Costantini, Esteban Pérez Caldentey and Mark Weisbrot. The mini symposium organized by Orsola I discuss in the beginning is here, and the papers by Cornell West and Nancy Fraser are here and here, respectively.

By Lance TaylorCan America recover ideal rates of growth through interest-rate policies? This important analysis suggests that most economists misunderstand the issue. Updating Keynes, the analysis suggests that fiscal stimulus, labor union bargaining power, and more progressive income taxes are needed to support growth. (The article includes some algebra, which some readers may choose to skip.)The main points of this paper are that loanable-funds macroeconomic models with their “natural”...

This is a review of this edited book that was just published in the Review of Political Economy.This substantial volume provides an interesting and exhaustive discussion of the theories of business cycles as presented in the main economic dictionaries and encyclopedias over a period of almost two centuries. For the most part the content corresponds to the views of key authors who contributed to the development of the theories of fluctuations. Some major authors are nevertheless not directly...

This Friday for those in New York, during the Meeting of the Eastern Economic Association.<Friday, February 24, 1:00-2:20>Roundtable on The Future of Neoliberalism (JEL Code B)Session Chair:  Esteban Pérez-Caldentey, ECLAC ChileRoundtable Panelists:Robert Blecker, American University Orsola Costantini, INET Kim Phillips-Fein, New York University Matías Vernengo, Bucknell UniversityMark Weisbrot, CEPR

Why You Should Never Use a Supply and Demand Diagram for Labor Markets -- by Peter Dorman at Econospeak. And you shouldn't, but the reasons given here are not the best (more on this on later post) Declining US Investment, Gross and Net -- Tim Taylor just show the data really (nope, no accelerator story, or any for that matter). Particularly worrisome is the decline in infrastructure investment, even after a recession What’s behind the decline in U.S. interest rates? -- Nick Bunker at the...