Incorporating Gender in Keynes`s Theory of Monetary Production
... In a real-wage system the ability of money to transfer purchasing power from the present to the future (the use of money as a store of value) and from the future to the present (animal spirits) would be meaningless. Since the concepts of animal spirits and liquidity preference illuminate the arbitra ...
... In a real-wage system the ability of money to transfer purchasing power from the present to the future (the use of money as a store of value) and from the future to the present (animal spirits) would be meaningless. Since the concepts of animal spirits and liquidity preference illuminate the arbitra ...
Implications-of-diff..
... with the Keynesian paradigm much more radical than before. The economy is assumed to be always in a state of full unemployment equilibrium. This does not exclude small fluctuations triggered by exogenous factors: mainly disturbances induced by Keynesian interventionist policies. In particular the ne ...
... with the Keynesian paradigm much more radical than before. The economy is assumed to be always in a state of full unemployment equilibrium. This does not exclude small fluctuations triggered by exogenous factors: mainly disturbances induced by Keynesian interventionist policies. In particular the ne ...
keynes – revolution and counter- revolution - Post
... one simple equation to explain the largest spending aggregate in an economy which must count as an act of genius. Having identified the propensity to consume it was but a small step for Keynes to detect the marginal propensity to consume, and with it the multiplier effect. The marginal propensity t ...
... one simple equation to explain the largest spending aggregate in an economy which must count as an act of genius. Having identified the propensity to consume it was but a small step for Keynes to detect the marginal propensity to consume, and with it the multiplier effect. The marginal propensity t ...
New classical/real business cycle macroeconomics The anatomy of
... macroeconomics, the microfoundations requirement. It became the sine qua non of valid theoretical practice: the condition for a macroeconomic model to be microfounded is that it starts with the description of how agents make their choices, these being made in an optimizing way. An objective function ...
... macroeconomics, the microfoundations requirement. It became the sine qua non of valid theoretical practice: the condition for a macroeconomic model to be microfounded is that it starts with the description of how agents make their choices, these being made in an optimizing way. An objective function ...
The end of laissez-faire - Dr. Günther Karl Chaloupek
... that an economic order which is stable and efficient must be established by a conscious act of the state. Moreover, sustainability of this order requires continuous efforts by the state to ensure that conditions of perfect competition are preserved, and tendencies to create monopolies suppressed in ...
... that an economic order which is stable and efficient must be established by a conscious act of the state. Moreover, sustainability of this order requires continuous efforts by the state to ensure that conditions of perfect competition are preserved, and tendencies to create monopolies suppressed in ...
Grundzüge Mikroökonomik Arbeitsunterlage 4: Grundlagen der
... that things would be worse without anti-cyclical policy ...
... that things would be worse without anti-cyclical policy ...
What can civil society expect from academic macroeconomics?
... economists. Dissatisfied with the existing situation, they were yearning for a new theory that would justify the abandonment of the laissez-faire doctrine. In this respect, Keynes’s work delivered beautifully. Small wonder then that it was received as a “liberating revelation” (Leijonhufvud 1968, p. ...
... economists. Dissatisfied with the existing situation, they were yearning for a new theory that would justify the abandonment of the laissez-faire doctrine. In this respect, Keynes’s work delivered beautifully. Small wonder then that it was received as a “liberating revelation” (Leijonhufvud 1968, p. ...
Validity of the economic thoughts of Keynes and Marx for the 21st
... quickly become competitor of the USA. From 1960-1965 wages in Europe and Japan, the main US competitors, rose from between 2-6 per cent annually, white wages in the US fell during the same period 0. 7 per cent. The new wage relationships caused a balance of payments surplus in America which reached ...
... quickly become competitor of the USA. From 1960-1965 wages in Europe and Japan, the main US competitors, rose from between 2-6 per cent annually, white wages in the US fell during the same period 0. 7 per cent. The new wage relationships caused a balance of payments surplus in America which reached ...
NBER WORKING PAPER SERIES AGGREGATE DEMAND AND SUPPLY Roger E. A. Farmer
... investment expenditure that, in turn, is the prime cause of fluctuations in aggregate demand. To capture this idea one requires a dynamic model since investment involves plans that span at least two periods. However, autonomous expenditure is also determined by government spending and by recognizing ...
... investment expenditure that, in turn, is the prime cause of fluctuations in aggregate demand. To capture this idea one requires a dynamic model since investment involves plans that span at least two periods. However, autonomous expenditure is also determined by government spending and by recognizing ...
PDF
... phenomena as “sticky” wages and liquidity traps accepts a basically classical, Walrasian environment, and implicitly endorses the classical view that recessions result from a failure of wage rates to fall, or other “imperfections” in self-adjusting markets. Leijonhufvut pointed out that this is quit ...
... phenomena as “sticky” wages and liquidity traps accepts a basically classical, Walrasian environment, and implicitly endorses the classical view that recessions result from a failure of wage rates to fall, or other “imperfections” in self-adjusting markets. Leijonhufvut pointed out that this is quit ...
Keynes, Keynesians and Contemporary Monetary Theory and Policy
... employment even in the long run. Harrod (1947, p. 69, emphasis added) summed this up best what Keynes (1936) had in mind. “The theory of interest is, I think, the central point in his scheme. He departs from the old orthodoxy in holding that the failure of the system to move to apposition of full ...
... employment even in the long run. Harrod (1947, p. 69, emphasis added) summed this up best what Keynes (1936) had in mind. “The theory of interest is, I think, the central point in his scheme. He departs from the old orthodoxy in holding that the failure of the system to move to apposition of full ...
Microfoundations: a decisive dividing line between Keynesian and
... While there is a low probability that equilibrium is realized at any given moment, the very fact that the economy is out of equilibrium triggers feed-back effects which bring it closer to equilibrium. In other words, it is asserted that equilibrium and disequilibrium, viewed as part and parcel of th ...
... While there is a low probability that equilibrium is realized at any given moment, the very fact that the economy is out of equilibrium triggers feed-back effects which bring it closer to equilibrium. In other words, it is asserted that equilibrium and disequilibrium, viewed as part and parcel of th ...
Macroeconomics of Keynesian and Marxian inspirations: Toward a
... - Configuration [4], proportions in the long term, defines the Classical-Marxian field of the formation of production prices within competition. Considering the average values of the variables, one can also define a Classical-Marxian long term macro configuration, as in [3], evocative of the postKey ...
... - Configuration [4], proportions in the long term, defines the Classical-Marxian field of the formation of production prices within competition. Considering the average values of the variables, one can also define a Classical-Marxian long term macro configuration, as in [3], evocative of the postKey ...
Aging Population, Health-Care Costs, and the National Debt
... and the system that generates economic data that Keynes (1937, p. 151) called “facts.” In his “critique” O’Donnell claims that the ergodic vs. nonergodic approach to uncertainty is “untenable” and that “its treatment of Keynes’s … work is inaccurate and tendentious” (O’Donnell, 2014–15, p. 187). We ...
... and the system that generates economic data that Keynes (1937, p. 151) called “facts.” In his “critique” O’Donnell claims that the ergodic vs. nonergodic approach to uncertainty is “untenable” and that “its treatment of Keynes’s … work is inaccurate and tendentious” (O’Donnell, 2014–15, p. 187). We ...
Keynes` Theory of Money and His Attack on the Classical Model
... Keynes theory of money was a key factor in his first line of attack on the classical model. His theory of money emerged from his rejection of the loanable funds and quantity theories and in so doing was the key to eliminating the classical dichotomy from his own analysis of the determination of inco ...
... Keynes theory of money was a key factor in his first line of attack on the classical model. His theory of money emerged from his rejection of the loanable funds and quantity theories and in so doing was the key to eliminating the classical dichotomy from his own analysis of the determination of inco ...
Keynes`s Theory of Depression
... means they have more funds available to purchase capital goods. In fact, if wage rates decline, this implies a decrease in costs of production and this makes many investments look more attractive to businesses. This will tend to promote less consumptive spending and more productive spending in the ...
... means they have more funds available to purchase capital goods. In fact, if wage rates decline, this implies a decrease in costs of production and this makes many investments look more attractive to businesses. This will tend to promote less consumptive spending and more productive spending in the ...
Ethics beyond Morality in Economic Thought
... developments concerning the ontology and ethics of the self to shed light on how Keynes’s search for the means to a good life goes beyond a simple normative or moral conduct, and actually represents a practice of self-government. We outline the Keynesian ethical system by underpinning the connection ...
... developments concerning the ontology and ethics of the self to shed light on how Keynes’s search for the means to a good life goes beyond a simple normative or moral conduct, and actually represents a practice of self-government. We outline the Keynesian ethical system by underpinning the connection ...
French circuit theory
... Keynes emphasised, contrasts sharply with the neoclassical paradigm of general equilibrium. To complete the picture, it ought to be pointed out that circuitists have adopted Keynes’s principle of effective demand which, they argue, is based on the circuit (cf. Barrère, 1990; Poulon, 1982), although ...
... Keynes emphasised, contrasts sharply with the neoclassical paradigm of general equilibrium. To complete the picture, it ought to be pointed out that circuitists have adopted Keynes’s principle of effective demand which, they argue, is based on the circuit (cf. Barrère, 1990; Poulon, 1982), although ...
A Comparison of the Theories of Joseph Alois Schumpeter and John
... income (Dillard, 1948). In other words, employment cannot increase unless investment increases. However, according to Keynes, a typical investment demand would be inadequate to fill this gap and therefore, aggregate demand and aggregate supply intersects at a point less than full employment (Dillard ...
... income (Dillard, 1948). In other words, employment cannot increase unless investment increases. However, according to Keynes, a typical investment demand would be inadequate to fill this gap and therefore, aggregate demand and aggregate supply intersects at a point less than full employment (Dillard ...
Sen`s capability approach and Post Keynesianism: similarities
... Sraffa, Luigi Pasinetti, or Pierangelo Garegnani, to American economists based in Cambridge, Massachusetts, such as Paul Samuelson or Robert Solow.2 Nevertheless, there are important differences between Sraffians and other Post Keynesians, which will be addressed below. Of course, the Cambridge Keyn ...
... Sraffa, Luigi Pasinetti, or Pierangelo Garegnani, to American economists based in Cambridge, Massachusetts, such as Paul Samuelson or Robert Solow.2 Nevertheless, there are important differences between Sraffians and other Post Keynesians, which will be addressed below. Of course, the Cambridge Keyn ...
Principles Of Macro Economics
... (C) P and M are constants (D) None of the above 11. The classical economists believed that the demand for labour is a function of: (A) Total money wages (B) Money wage rate (C) Total real wages (D) Real wage rate 12. In classical theory of employment, there is the possibility of: (A) Voluntary unemp ...
... (C) P and M are constants (D) None of the above 11. The classical economists believed that the demand for labour is a function of: (A) Total money wages (B) Money wage rate (C) Total real wages (D) Real wage rate 12. In classical theory of employment, there is the possibility of: (A) Voluntary unemp ...
Comparative Interpretation of Classical and Keynesian Fiscal
... Yuzuncu Yil University, Faculty of Economics and Administrative Sciences, Van, 65080, Turkey ...
... Yuzuncu Yil University, Faculty of Economics and Administrative Sciences, Van, 65080, Turkey ...
Document
... variant of the systems dynamics approach. “Systems dynamics is well-suited to post-Keynesianinstitutionalist economic model building. It is a dynamic disequilibrium approach to modelling complex systems that portrays human behaviour and micro-level decision making as it actually is, rather than as i ...
... variant of the systems dynamics approach. “Systems dynamics is well-suited to post-Keynesianinstitutionalist economic model building. It is a dynamic disequilibrium approach to modelling complex systems that portrays human behaviour and micro-level decision making as it actually is, rather than as i ...
Mecpoc Symposium design
... problem with orthodox economists supporting such plans was how to reconcile their policy advice with theoretical models. For the latter, fiscal policy has little, if any, expansionary effects, while fiscal deficits ultimately absorb financial resources from the private sector. This tension between m ...
... problem with orthodox economists supporting such plans was how to reconcile their policy advice with theoretical models. For the latter, fiscal policy has little, if any, expansionary effects, while fiscal deficits ultimately absorb financial resources from the private sector. This tension between m ...
Full Employment: The Road Not Taken
... According to Keynes, pumping more spending into the economy does not necessarily generate enough job growth to bring the economy to full employment – it all depends on the employment elasticity of demand. At the macro-level, a dollar spent is a dollar earned, but any windfall to households and firms ...
... According to Keynes, pumping more spending into the economy does not necessarily generate enough job growth to bring the economy to full employment – it all depends on the employment elasticity of demand. At the macro-level, a dollar spent is a dollar earned, but any windfall to households and firms ...
Keynesian Revolution
The Keynesian Revolution was a fundamental reworking of economic theory concerning the factors determining employment levels in the overall economy. The revolution was set against the then orthodox economic framework: Neoclassical economics.The early stage of the Keynesian Revolution took place in the years following the publication of Keynes' General Theory in 1936. It saw the neoclassical understanding of employment replaced with Keynes' view that demand, and not supply, is the driving factor determining levels of employment. This provided Keynes and his supporters with a theoretical basis to argue that governments should intervene to alleviate severe unemployment. With Keynes unable to take much part in theoretical debate after 1937, a process swiftly got under way to reconcile his work with the old system to form Neo-Keynesian economics, a mixture of neoclassical economics and Keynesian economics. The process of mixing these schools is referred to as the neoclassical synthesis, and Neo-Keynesian economics can be summarized as ""Keynesian in macroeconomics, neoclassical in microeconomics"".