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Tag Archives: balance of payments

Anthony Thirlwall — Thoughts On Balance-Of-Payments-Constrained Growth After 40 Years

Anthony Thirlwall — Thoughts On Balance-Of-Payments-Constrained Growth After 40 YearsROKE (Review Of Keynesian Economics) has a special issue, Thirlwall’s Law At 40, celebrating Thirlwall’s law which Anthony Thilwall discovered in 1979.Thirlwall himself has an article in the issue.Interesting, from the conclusion:Structural change almost certainly requires a country to design an industrial policy embracing a national innovation system to facilitate the flow of technological knowledge across...

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Ramanan — The Cambridge Political Economy Society Digital Archive

I came across the CPES digital archive today. It has scans of papers which aren’t available elsewhere. There’s an interesting article Causes Of Growth And Recession In World Trade, there by Francis Cripps, in which he describes the Cambridge Keynesian idea of achieving balanced trade, because nations face a balance-of-payments constraint: The Case for Concerted ActionThe Cambridge Political Economy Society Digital ArchiveV. Ramanan

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The Cambridge Political Economy Society Digital Archive

I came across the Cambridge Political Economy Society digital archive today. It has scans of papers which aren’t available elsewhere.There’s an interesting article, Causes Of Growth And Recession In World Trade, there, by Francis Cripps, in which he describes the Cambridge Keynesian idea of achieving balanced trade, because nations face a balance-of-payments constraint:The main conclusion of the analysis presented below is that demand creation by means of fiscal and monetary action at the...

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Matias Vernengo — Forty Years Of Balance Of Payments Constrained Growth And Thirlwall’s Law

Matias Vernengo — Forty Years Of Balance Of Payments Constrained Growth And Thirlwall’s LawAccording to Matias Vernengo, Review Of Keynesian Economics (ROKE) will soon publish a special issue on Thirlwall’s Law, with a contribution by Anthony Thirlwall himself.Matias’ post has a scan of Thirlwall’s notes where he penned y = x/π.

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Doug Henwood In Jacobin On Neochartalism

Doug Henwood In Jacobin On NeochartalismOn Facebook, Doug Henwood says that he wanted the title The Phantasmic World Of Modern Monetary Theory, A Late Imperial Fever Dream for his piece critiquing Neochartalism but Jacobin editors changed it to Modern Monetary Theory Isn’t Helping.Henwood has written an excellent critique of Neochartalism, a cut above most critiques. I liked the part about Beardsley Ruml who is quoted frequently by the Chartalists but it turns out that he is a right-wing nut,...

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Bill Mitchell — MMT and the external sector – redux

This blog post is written for a workshop I am participating in Germany on Saturday, October 13, 2018. The panel I am part of is focusing on external trade and currency issues. In this post, I bring together the basic arguments I will be presenting. One of the issues that is often brought up in relation to Modern Monetary Theory (MMT) relates to the foreign exchange markets and the external accounts of nations (particularly the Current Account). Even progressive-minded economists seem to...

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Timothy Taylor — Some Facts on Global Current Account Balances

Maybe the trade war with China isn't actually about MAGA at all, but just economic warfare against a rising competitor. If trade surplus are so "unfair," why is the focus not on Germany given the figures, enquiring minds want to know. Or, do Donald Trump and his economic team not realize this?Conversable EconomistSome Facts on Global Current Account BalancesTimothy Taylor | Managing editor of the Journal of Economic Perspectives, based at Macalester College in St. Paul, Minnesota

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An Analysis of Financial Flows in the Canadian Economy

An essential but perhaps overlooked way of looking at the economy is a sector financial balance approach. Pioneered by the late UK economist Wynne Godley, this approach starts with National Accounts data (called Financial Flow Accounts) for four broad sectors of the economy: households, corporations, government and non-residents. Here’s how it works: in any given quarter or year each sector can be a net borrower or lender, but the sum of the four sectors’ borrowing/lending must equal to...

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Brad Setser On The U.S., China And The New “Adjusted Trade Balance”

Since Donald Trump considers the US trade imbalance as the root of all problems and there is—understandably for many reasons—a resistance to Trump, there is a tendency to deny anything he says. This movement is led by Paul Krugman who repeatedly attempts to play down the supreme importance of the critical imbalance of US trade.One is the trade imbalance with China. In the pre-globalised world, trade deficit would mean what it means. But because of offshoring of production to exploit low wages...

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The Burden Of Adjustment And Keynes’ Solution

Argentina had a balance-of-payments crisis recently and required help. The IMF has agreed for a stand-by arrangement of $50 billion on the condition in the IMF’s own words:“At the core of the government’s economic plan is a rebalancing of the fiscal position. We fully support this priority and welcome the authorities’ intention to accelerate the pace at which they reduce the federal government’s deficit, restoring the primary balance by 2020. This measure will ultimately lessen the government...

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