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on Post Keynesian Economics |
| By: | Hein, Eckhard; Häusler, Christoph |
| Abstract: | This paper conducts a systematic comparison of two main textbook variants within the Kaleckian tradition of post-Keynesian conflict inflation and distribution theory: the Blecker/Setterfield (2019) and Lavoie (1992, 2022) (BSL) model based on Dutt (1987), and the Hein (2023a) and Hein/Stockhammer (2011) (HS) model founded on Rowthorn (1977). Focusing on a basic closed economy framework sans government, we explore various iterations of each approach. Our analysis reveals that disparities chiefly centre around the treatment of price inflation expectations ('indexation') and the incorporation of bargaining power in wage- and price-inflation equations. BSL variants generally yield stable price Phillips curves, stable distribution and employment curves, and hence stable equilibria. Only the BSL3 variant with complete indexation and complete pass-through generates shifting Phillips and employment curves, implying instability. It is thus similar to the HS-0 approach, which has bargaining power and complete indexation representing adaptive expectations in wage inflation and incomplete pass-through in price inflation. Introducing a workers' wage share target directly into the wage-inflation equation, but keeping full indexation/adaptive expectations in wage inflation and incomplete pass-through in price inflation, allows for stable and even flat Phillips curves, stable distribution and employment curves, and hence stable equilibria in the HS approach. |
| Keywords: | conflict inflation, employment, distribution, post-Keynesian models |
| JEL: | E12 E24 E25 E31 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:281766&r=pke |
| By: | Drakopoulos, Stavros A. |
| Abstract: | This short paper is the entry on Encyclopedia of Diversity, Equity, Inclusion and Spirituality (edited by Marques, J.). Springer, Cham, 2024. The entry describes the role, function, and nature of labor unions and their leadership from a non-orthodox perspective. It shows that since the end of the 19th century, a division between orthodox and non-orthodox approaches toward the study of labor unions can be discerned. The orthodox framework was formed in the late 19th century with the gradual establishment of Marginalism, and it consolidated itself with the dominance of early neoclassical economics. Orthodox economic theory did not devote much attention to the economic analysis of unions. On the contrary and during the same period, non-orthodox economists such as Sidney and Beatrice Webb and early institutionalists, had paid considerable attention to the study of unions, perceiving them as politico-economic organizations and emphasizing their wider role as social institutions. The legacy of those two approaches continued in the 20th century and contemporary analyses of labor unions. The orthodox approach (originating mainly from the work of John Dunlop), generally conceives unions as purely economic units, analogous to firms, which can be studied by applying the standard tools of microeconomic theory. In this framework, the notion of union leadership plays a minimum role. In contrast, the non-orthodox viewpoint (originating mainly from Arthur Ross’ works), embraces a holistic, institutional-political-based attitude to the study of labor unionism. |
| Keywords: | Trade Unions; Labor Union Leadership, Gender inequality |
| JEL: | J51 J70 M50 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119787&r=pke |
| By: | Goodhart, C. A. E.; Postel-Vinay, Natacha |
| Abstract: | The City of Glasgow Bank failure in 1878, which led to large numbers of shareholders becoming insolvent, generated great public concern about their plight, and led directly to the 1879 Companies Act, which paved the way for the adoption of limited liability for all shareholders. In this paper, we focus on the question of why the opportunity was not taken to distinguish between the appropriate liability for ‘insiders, ’ i.e. those with direct access to information and power over decisions, as contrasted with ‘outsiders.’ We record that such issues were raised and discussed at the time, and we report why proposals for any such graded liability were turned down. We argue that the reasons for rejecting graded liability for insiders were overstated, both then and subsequently. While we believe that the case for such graded liability needs reconsideration, it does remain a complex matter, as discussed in Section 4. |
| Keywords: | corporate governance; limited liability; bank risk-taking; financial regulation; financial crises; senior management regime; banks; banking |
| JEL: | G21 G28 G30 G32 G39 N23 K22 K29 L20 |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:wpaper:121956&r=pke |
| By: | Rishi Goyal (International Monetary Fund); Ratna Sahay (Center for Global Development; National Council of Applied Economic Research, New Delhi) |
| Abstract: | The International Monetary Fund’s 2022 Strategy to Mainstream Gender calls for an intentional and systematic approach to integrating gender into macroeconomic policies to foster strong, sustainable, and inclusive growth. This paper argues that the IMF is filling a critical gap in its mandate by mainstreaming gender into its work. It makes the case that (i) closing gender gaps is macrocritical because they go hand-in-hand with higher economic growth, greater financial stability, and lower income inequality. Not doing so would lead to underdevelopment, underutilization, and misallocation of productive human resources; and (ii) applying a gender lens to macroeconomic, financial, and structural policy design can help to narrow gender gaps and result in improved economic outcomes. This paper provides an overview of gender gaps in opportunities, outcomes, and representation; takes stock of how these gaps impact macroeconomic and financial outcomes; and identifies polices to narrow these gaps. It explains how narrowing gender gaps can benefit societies and outlines steps countries can take to unleash the economic gains from gender equality. |
| Date: | 2024–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:675&r=pke |
| By: | Perry Mehrling (Pardee School of Global Studies at Boston University) |
| Abstract: | Bagehot is difficult for modern economists to read with understanding, for three reasons. He was a classical economist not neoclassical, his orientation was global not national, and, most importantly, his intellectual formation was as a practicing country banker not an academic. This paper adopts all three perspectives, and uses this frame to reinterpret his mature work, both Lombard Street and the unfinished Economic Studies, as the origin of the key currency tradition which continues as a minority view in modern economics. |
| Keywords: | Bagehot Rule, key currency, money view, Lombard Street, Ricardo |
| JEL: | B12 B17 B31 |
| Date: | 2024–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:inetwp216&r=pke |
| By: | Heidi Hartmann |
| Abstract: | Heidi Hartmann, founder of the Institute for Women’s Policy Research, talks about the concept of “comparable worth” and what attracted her to the field of economics. |
| Keywords: | women in economics; public policy |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:97719&r=pke |