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on Post Keynesian Economics |
| By: | Tsoulfidis, Lefteris; Chatzarakis, Nikolaos |
| Abstract: | This paper examines the conditions leading neoclassical economics to its division into microeconomics and macroeconomics, comparing it with the integrated macroscopic-microscopic approach of Classical Political Economy (CPE). Neoclassical economics emerged in the last quarter of the 19th century introducing a subjective theory of value based on individual preferences and optimizing behavior. The division between micro and macroeconomics became visible during the 1930s crisis due to what came to be known as monopolistic competition and macroeconomic revolutions. The stagflation crisis (of late 1960s to early 1980s) prompted the so-called microfounding of macroeconomics and the unified treatment of macroeconomic issues. By contrast, the CPE maintains a unified perspective, analyzing capitalism broadly at a macroscopic level focusing on labor as the primary value creator. Unlike neoclassical theory, CPE prioritizes aggregated variables and social class incomes driven by survival and profit motives rather than subjective preferences. The paper concludes that issues of effective demand, growth, and cycles can be fruitfully addressed within the unified CPE framework, highlighting the theoretical consistency of employing the labor theory of value for evaluating aggregate variables like capital. |
| Keywords: | Microfoundations, Classical Political Economy, Labor Theory of Value, Utility, Marginal Productivity |
| JEL: | B21 B22 B51 D01 E10 E11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121951 |
| By: | Suzanne J Konzelmann |
| Abstract: | There is a strong resonance between events of the inter-war years and today. These include a questioning of laissez-faire capitalism and austerity, and the rise of so-called “populist” parties on both the left and right. Clara Mattei’s (2022) The Capital Order: How Economists Invented Austerity and Paved the Way to Fascism thus makes an interesting contribution, by locating the key argument of her book in the febrile period of European history between the wars. According to Mattei, the First World War disrupted the pre-war capitalist system to such an extent that it created a crisis of capitalism, itself. As a result, following the end of hostilities, there was a conscious effort to restore the pre-war “capital order” by means of a technocratic “austerity strategy”; and this was strongly linked to the rise of fascism. We argue that the inter-relationship between capitalism, austerity and fascism during the 1920s and 1930s was rather more complex, and that to make sense of this, it is necessary to broaden the focus beyond Italy and Great Britain and the international financial conferences at Brussels (1920) and Genoa (1922). Otherwise, we risk misunderstanding and mis-diagnosing our own times, as those inter-war politicians, financiers and economists discovered to their cost. We therefore also include Germany and the United States and base our analysis on the events of the entire inter-war period. |
| Keywords: | Laissez-faire capitalism, fascism, austerity, insecurity cycle, John Maynard Keynes, Karl Polanyi |
| JEL: | N12 N14 P1 P30 P52 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:cbr:cbrwps:wp540 |
| By: | HARIT, ADITYA |
| Abstract: | Stubble burning in Punjab and Haryana presents significant environmental and health challenges. This paper develops a Keynesian economic model to analyze the equilibrium between stubble burning and alternative methods, integrating the role of government intervention, central bank policies, and trade variables. By solving the model step by step, it provide insights into how fiscal and monetary policies can optimize social welfare and address externalities associated with stubble burning. |
| Keywords: | Stubble Burning, Cost Analysis, Economic Equilibrium, Alternate Policies, Decision Making, Environmental Impact, Farmer Behaviour |
| JEL: | C02 E0 E12 E50 H00 Q01 Q11 Q19 |
| Date: | 2024–09–21 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122164 |