Tag Archives: Finance

Keynes’s finance, the monetary and demand-led circuits: a Sraffian assessment Working Paper n.851 - Marzo 2021Sergio Cesaratto DEPS, USiena Riccardo Pariboni DEPS, USiena Abstract This paper aims to stimulate the convergence of the Sraffian approach to demand-led growth theory with insights from monetary circuit theory and stock-flow models. The first Sraffian contribution to this convergence we...

Pubblicato da Brave New Europe, a breve la versione italiana. Sergio Cesaratto – The Next EU Degeneration February 2, 2021 Austerity, Economics, EU politics, EU-Institutions, Finance, Inequality, National Politics, Neo-Liberalism in the EU, Regulation, Solutions The Next Generation EU programme is full of pitfalls for many EU nations, as here in Italy. Sergio Cesaratto is Professor of Growth and Development Economics and of Monetary and Fiscal...

by Joseph Joyce 2020 “Globie”: The Carry Trade It is time to announce the recipient of this year’s “Globie”, i.e., the Globalization Book of the Year. The award gives me a chance to draw attention to a book that is particularly insightful about some aspect of globalization. This year’s winner is The Rise of Carry: The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis by Tim Lee, Jamie...

Minsky’s journey from socialism to stability for capitalist profitability comes about because he and the post-Keynesians deny and/or ignore Marx’s law of value, just as the ‘market socialists’, Lange and Lerner, did. The post-Keynesians and MMTers deny/ignore that profit comes from surplus value extracted by exploitation in the capitalist production process and it is this that is the driving force for investment and employment. They ignore the origin and role of profit, except as a residual...

Although I've taken issue with various MMT claims in the past (see, e.g. here and here), I've grown to respect several Modern Monetary Theorists. Far from being ill-informed, people like Eric Tymoigne and Nathan Tankus (the list is by no means exhaustive–these happen to be two whose work I know best) know a lot more than many orthodox economists do about the workings of the U.S. monetary system. Knowing this, I'm not inclined to accuse Modern Monetary Theorists of being ignorant just...

A slope even non-economists can loveGuest post by Jeff Mosenkis of Innovations for Poverty Action First, please pass along to your skiing friends that the owner of the ski treehouse above in Whitefish, MT (Glacier National Park adjacent) is offering to donate proceeds to the non-profit I work for, IPA, from any rentals between now and Jan 31. (Instructions here)Among other things, IPA’s been investing in expanding the things that academics don’t always have incentives to do, hiring Ph.D.s...

Debts that can’t be paid, won’t be. That point inevitably arrives on the liabilities side of the economy’s balance sheet. But what of the asset side? One person’s debt is a creditor’s claim for payment. This is defined as “savings,” even though banks simply create credit endogenously on their own computers without needing any prior savings. When debts can’t be paid and debtors default, what happens to these creditors?  Michael Hudson — On Finance, Real Estate And The Powers Of...

The expansion of banks such as Citigroup into Cuba, Haiti, and beyond reveal a story of capitalism built on blood, labor, and racial lines.  Scrubbed from the pages of glossy coffeetable books, the history of U.S. imperialism can be found in the archives of Wall Street’s oldest, largest, and most powerful institutions. A deep dive into the vaults and ledgers of banking houses such as Citigroup, Inc., and J. P. Morgan Chase and Co. reveals a story of capitalism and empire whose narrative is...

In a recent article for the New Statesman, the economics commentator Grace Blakeley makes an extraordinary claim. Writing about the origins of the IMF, she says: Seventy-five years have passed since these international financial institutions were created in Bretton Woods, New Hampshire, in 1944. Back then, delegates sought to tame the power of international finance, the growth of which helped to cause the 1929 Wall Street Crash and the ensuing Great Depression. JM Keynes – who led the...

Michael Hudson — On Finance, Real Estate And The Powers Of NeoliberalismUp in Arms Michael Hudson | President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City, and Guest Professor at Peking University