Tag Archives: Thirlwall’s Law

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

Table of contents of the next issue of the Review of Keynesian EconomicsThirlwall’s law at 40 Esteban Pérez Caldentey and Matías VernengoWhy Thirlwall’s law is not a tautology: more on the debate over the law J.S.L. McCombie Endogenous growth, capital accumulation and Thirlwall’s dynamics: the case of Latin America Ignacio Perrotini-Hernández and Juan Alberto Vázquez-MuñozThirlwall’s law and the terms of trade: a parsimonious extension of the balance-of-payments-constrained growth...

From original draft by Thirlwall Thirlwall's seminal paper on the balance of payments (BOP) constrained growth is forty years old. Paul Davidson once referred to the BOP constrained growth as a positive Post Keynesian contribution to economics. The Review of Keynesian Economics (ROKE) will publish soon a special issue with many well-known contributors to the literature, and with a paper by Thirlwall himself.The idea built on the Kaldorian supermultiplier model (Kaldor mark II), and with...

I've been reading The Nobel Factor: The Prize in Economics, Social Democracy, and the Market Turn by Avner Offer, Gabriel Söderberg, an interesting critique of the use of the Nobel Prize to undermine the Welfare State, essentially by conservative groups in Sweden, that were influential within the Central Bank (Riksbank), that disliked the Social Democratic policies in place in the 1960s. I have been critical of the Riksbank prize before (see, for example, here or here; check also Lars...

Short note on Thirlwall's Law by Lance Taylor available here. As he notes on Thirlwall's Law:  "Insofar as they [the conditions to generate it] are 'extreme,' the plausibility of (3) [Thirlwall's Law] is open to doubt," which is one of the points I raised in my recent debate with Jaime Ros. Causality here remains from exports to growth, which was reversed in Clavijo and Ros, but there is a healthy skepticism about the generality of the law.Arguably Godley had a version of Thirlwall's Law...

 The other side Jaime Ros, with Pedro Hugo Clavijo, wrote a critique of Thirlwall's Law (in Spanish). Replies by Carlos Ibarra here, Esteban Pérez here and myself here. Their rejoinder here. All in Spanish. Haven't read the whole rejoinder yet (just got it), but for some reason they insist that the supermultiplier implies that exports are always the main source of autonomous demand.* Hm, that's weird. Just puzzled by that one. They should read Bortis and Serrano (this one with Fabio...