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on Post Keynesian Economics |
| By: | Vlados, Charis (Democritus University of Thrace, Department of Economics) |
| Abstract: | This study explores the evolving theoretical divide within the field of International Political Economy (IPE), focusing on the debate between the advocates of new globalization and critics from the anti-globalization perspective. By conducting an integrative review of the contemporary literature, we explore the foundational theories, core components, and primary theorists of both perspectives, aiming to understand their predictions for future global dynamics. The investigation reveals a polarization in theoretical orientation, reflecting divergent views on the implications of globalization. Through a critical analysis, the paper identifies the liberal international order and the respective contemporary neo-Marxist viewpoints as central to the debate, evaluating their critiques and contributions to understanding the new globalization’s trajectory. We suggest a synthesis of these perspectives, positing that the future of globalization—or “new globalization”—will be influenced by structural changes in global power dynamics, ongoing crises, and technological progress. This is encapsulated in the “evolutionary structural triptych” (EST) approach, which perceives the world economy as an evolutionary result of political, economic, and technological structures, which correspondingly reposition the objectives of stability, growth, and innovation in the new emerging era. In conclusion, we advocate for a balanced approach to globalization, emphasizing the need for policies that promote fairness, sustainability, and cooperation in the changing global environment. This leads to the re-introduction of an appealing concept for globalization’s future: a new, realistic, open, and innovative global liberalism. |
| Keywords: | international political economy; new globalization; anti-globalization; liberal international order; neo-Marxist perspectives; evolutionary structural triptych; socioeconomic development |
| JEL: | F60 |
| Date: | 2024–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:duthrp:2024_005 |
| By: | Jamaledini, Ashkan; Khazaei, Ehsan |
| Abstract: | Environmental protection is a critical global concern as societies confront the pressing challenges of climate change, resource depletion, and ecological degradation. This paper explores the green economy's pivotal role in promoting sustainable development and advancing international environmental protection. A green economy shifts economic paradigms by integrating economic growth with environmental stewardship, prioritizing ecological resilience, and operating within planetary boundaries. This approach ensures that present and future generations can thrive without compromising environmental integrity. At its core, the green economy harmonizes economic progress, societal well-being, and environmental health, addressing the trade-offs inherent in traditional development models. It redefines wealth to include natural assets such as clean air, water, fertile soils, and biodiversity, fostering policies for sustainable land use, resource extraction, and renewable energy adoption. The green economy has also influenced international environmental law, driving a paradigm shift in global agreements, including the Rio Declaration and the Paris Agreement. This paper examines the legal principles underpinning the green economy, exploring its alignment with existing frameworks and its role in global environmental governance. In conclusion, the green economy offers a pragmatic, transnational strategy for achieving sustainable development, fostering a synergy between human prosperity and ecological health for a more harmonious future. |
| Keywords: | Green Economy; Sustainable Development; Environmental Protection; International Environmental Law; Ecological Resilience |
| JEL: | L0 Q4 Q40 Q47 Q48 |
| Date: | 2024–11–23 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123078 |
| By: | Pettena, Mattia (CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy); Raberto, Marco (University of Genoa - Department of Mechanical, Energy, Management and Transportation Engineering) |
| Abstract: | The energy transition involves substantial structural changes in the economy. Green utilities increase their production and investments, while brown utilities and fossil fuel producers decline. These developments impact supply chains in expansionary and contractionary ways, respectively, with the net effect feeding back into the economy by a↵ecting aggregate consumption and investment. We have developed a Stock-Flow Consistent Input-Output macroeconomic model of the world economy to analyse these dynamics. It includes a production network comprising 27 industries, differentiating between key mining, manufacturing, service, and both green and brown electricity sectors. It is the first model of its kind to have each industry invest in distinct capital goods based on sector- and asset-specific requirements. All parameters related to production technologies capture physical relationships and are derived from real-world data. We have simulated three energy transition pathways envisioned by the International Energy Agency (IEA) by modeling two parallel processes: (i) the increasing share of total electricity generated by green utilities and (ii) the electrification of production techniques and household consumption. The resulting dynamics yield several key insights. In the short-to-medium term, the net effect of the above-mentioned expansionary and contractionary forces is to boost GDP growth. The relative importance of industries supplying machinery and metals increases. The electrification of transportation services raises their cost, which, in turn, a↵ects other prices and generates inflation. Finally, we find that electricity production significantly exceeds IEA’s projections, which may underestimate demand due to their framework’s absence of an input-output production structure. |
| Keywords: | Energy transition; Renewable energy investment; Structural change; Input-Output modeling; Stock-Flow Consistent model; Electrification; Net Zero |
| JEL: | C63 C67 E12 L16 Q43 |
| Date: | 2024–12–27 |
| URL: | https://d.repec.org/n?u=RePEc:sal:celpdp:0171 |
| By: | Charles A.E. Goodhart (Financial Markets Group, London School of Economics and CEPR); M. Udara Peiris (Oberlin College); Dimitrios P. Tsomocos (Saïd Business School and St. Edmund Hall, University of Oxford); Xuan Wang (Vrije Universiteit Amsterdam and Tinbergen Institute) |
| Abstract: | We investigate how corporate legacy debt, through heterogeneous household portfolios, affects monetary policy’s ability to control inflation. We find that (1) corporate debt generates an income effect that counters the traditional substitution effect, reducing the effectiveness of rate changes on inflation; (2) higher corporate debt exacerbates the trade-off between output and inflation stabilization. The income is positive on aggregate demand and inflation despite declining output. Local projections using U.S. monetary policy shocks show that over six quarters the cumulative difference in output and inflation for high and low corporate debt-to-household asset ratios is 3 percent and 1.2 percent. |
| Keywords: | Household heterogeneity, Inflation, Monetary policy, Corporate debt, Giffen good |
| JEL: | E31 E32 E52 G11 |
| Date: | 2024–11–26 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20240071 |