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on Post Keynesian Economics |
| By: | Baron, Hervé |
| Abstract: | In the following paper, we shall focus on the Italian branch of the monetary circuit (or monetary theory of production). In particular, we shall attempt a methodical exploration of the theoretical production of the one who may rightly be considered the founding father of this branch: Augusto Graziani. We shall do this along three lines. Firstly, in the wake of Lunghini and Bianchi (2003), we shall argue that that of Graziani, far from being a complete model, is presented as a historically “open” scheme, which therefore needs “closure”. Secondly, we shall argue that this scheme should be considered as a logical, not historical, re-construction of the functioning of the capitalist economy. Finally, we shall illustrate how such a scheme stands at the highest possible level of abstraction. |
| Keywords: | Monetary Circuit, Graziani, Methodology. |
| JEL: | B31 B41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119511&r=pke |
| By: | Palma, J. G. |
| Abstract: | Krugman identified the enigma of Latin America's economic underperformance as one of the greatest analytical challenges of economic theory today. I shall attempt to answer this challenge by interlinking the key three facets of Latin America’s current “trilogy of contrasts†: i) when compared with all other regions and main countries since the 1980s economic reforms, Latin America’s capacity to generate employment in services and construction ranks top in the world; ii) however, its productivity-growth (increase of output per worker) ranks bottom; and iii) despite some progress in poverty reduction and in the income-share of the bottom 40%, Latin America still ranks almost top in terms of inequality. Post-1980 LA is indeed a region of contrasts! What follows (even if you have the advantage of having an Amazon, or proximity to the US) is that as the old productive strategies have run their course ―“extractivism†for some, assembly platforms for foreign conglomerates for others―, the only way forward is to generate new engines of productivity-growth. Trying to stretch the “shelf-life†of the old one is a recipe for falling in the middle-income trap. Exporting “more of the same†unprocessed commodities or products from “shallow†manufacturing assembly-operations is no longer a valid growth-option for LA. But domestic rigidities and markets imperfections and failures (home and abroad) are blocking the necessary “upgrade†of these exhausted productive strategies; and it is unlikely that change would be led by rentier domestic elites, FDI or weak governments. But the conventional hegemonic wisdom still expects these countries to leap from mid-table to higher income-per capita through policies based on the same institutional setting, elite-preferences, and ideology that got them stuck in mid-table —this is not a realistic solution. |
| Keywords: | Latin America, “easy†rents, rentier elites, “extractivism†, assembly manufacturing, green new deal, productivity-growth, inequality, “reverse†flying geese, middle-income trap, neo-liberalism, emerging Asia, China, David Ricardo |
| JEL: | E2 N10 O11 O47 B00 G01 Q02 |
| Date: | 2023–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2380&r=pke |
| By: | William Brock; Anastasios Xepapadeas |
| Abstract: | This paper puts forth a growth model that takes into account the fact that the economy is embedded in a finite Earth. Economic activity causes greenhouse gas (GHG) emissions into the atmosphere and uses services from the biosphere. There are two main messages from the analysis: First, R&D in technologies that reduce GHG emissions and inputs from the biosphere must be ramped up rapidly. Second, in view of the fact that the top 10% of the world's inhabitants have roughly 76% of the world's wealth, consumption that causes emissions and uses inputs from the biosphere must decrease rapidly. |
| Keywords: | growth, limits, biosphere, population dynamics, impact inequality, biosphere saving technology |
| JEL: | O44 J13 Q01 |
| Date: | 2024–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2402&r=pke |
| By: | Khan, Haider |
| Abstract: | The main purpose of this paper is to locate the so-called developing economies (DEs) analytically within the complex dynamics of the global capitalist order(GCO). Using the ideas of disorder at the micro level and the emergence of order at the macro level out of this disorder, the capitalist order/disorder dynamics in the developing economies is explored theoretically and empirically. The classical idea of real competition can be used to explore how a crisis-ridden dynamics of uneven development emerges particularly for the DEs as part of the GCO dynamics. Some limits of policies and of the so-called developmental state capacities can be identified through this analysis. A related purpose of this paper is to explore the possibilities of industrialization and development with equity in the 21st century with an emphasis on rapidly growing developing economies in the global system such as the BRICS . The formal nonlinear model presented in the appendix may be seen as an initial step to put the analysis within a complex economic systems framework. Real competition and relative surplus value extraction play critical conceptual roles in this complex dynamic process. China is selected from among the BRICS as a special case study of DEs. More specifically, the complex dynamics underlying the relative surplus value extraction is explored in the context of growth, inequality and poverty. In addition--- and crucially--- the paper then analyzes the problems of industrialization and innovation in the 21st century context for China from a strategic perspective. The problems revealed through this case study can highlight many of the challenges of development, industrialization and innovation in the 21st century for the other BRICS as well as for many other developing countries. However, it must be pointed out that China is also a special ambiguous case in many respects with elements of capitalism along with some socialist elements reemphasized in the last 20 years and especially under Xi. There are also ecological issues that PRC is trying to tackle but it is not certain that it can do so in time to save our planet when the US is clearly going the other way. |
| Keywords: | Real Competition, Relative Surplus Value, GCO, Complex Dynamics, Emergence, Development, Limits of Development under GCO, Crisis, Sustainable Capabilities Enhancing National Innovation System(SCENIS) |
| JEL: | B5 B51 O1 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119640&r=pke |