Search results for "Keynesian"

Credit, Money and Macroeconomic Policy. A Post Keynesian Approach

2011

International audience

Active monetary policy and instability in a phillips curve system

1998

The presence of nonlinearities in a Phillips curve system yields to complex dynamics, i.e., cyclical behavior that may (under some parametric set) become chaotic. This paper extends these conclusions by including an active monetary policy. We show how stabilization policy may lead to amplified instabilities and that agents' expectations tend to play a key role in the amount of these instabilities.

Debating Sound Money in Early Modern Europe: From Dualist to Metallic Monetary Systems

2019

International audience; In this paper, we present the monetary debates in Europe from the XVIth to the XVIIIth centuries from the viewpoint of the problem of good and sound money. The framework of the paper is built on a typology of monetary systems, by which a dualist system is distinguished from a metallic one. Under the dualist system, the value in units of account of the specie in circulation was defined by monetary proclamations (Einaudi locates this era from Charlemagne to the French Revolution). Metallist proponents aimed at preventing any kind of manipulations with a radical transformation of the system of payment, which gave birth to a metallic monetary system from the very end of …

Addressing the Pandemic in the Philippines Necessitates a New Economic Paradigm

2020

The macroeconomic governance of the European Monetary Union: A Keynesian perspective

2005

Revised version - May 2006; Extending Asensio's closed-economy framework (2005a,b) to a monetary union, we show that theprinciples of governance which emanate from the so called "New Consensus in Macroeconomics"(NCM), and therefore have been designed for presumed stationary regimes, may cause severedysfunctions, such as depressive macroeconomic policies and unemployment traps, in non-ergodicregimes. The Keynesian approach, on the other hand, pleads in favour of important changes in thecurrent governance of the eurozone. First, since the European Central Bank can not repress distributiveinflationary pressures without having non-temporary depressive effects on aggregate demand andemployment, …

The Rodrik Trilemma and the Dahrendorf Quandary: An Empirical Assessment

2021

Rodrik’s Trilemma rests on the incompatibility of democracy, national sovereignty, and global economic integration: any two can be combined, but never all three simultaneously and in full. Addressing the same problèmatique but from a different perspective, Dahrendorf’s Quandary posits that, over time, maintaining global economic competitiveness requires countries either to adopt measures detrimental to the cohesion of civil society or to restrict civil liberties and political participation. The purpose of this article is to examine the empirical foundations of Rodrik’s and Dahrendorf’s propositions. When one assesses developed market economies from 1991 to 2014, evidence suggests that only …

The Equilibrium Real Exchange Rate of Germany

1997

The NATREX model defines the fundamental determinants of the equilibrium real effective exchange rate in the medium to longer run. The PPP theory is a special case of the NATREX when a linear combination of the fundamentals, which are productivity and social thrift, is stationary. The differences in social thrift under Schmidt and Kohl, and the effects of the European terms of trade upon the q-ratio, explain the variations in the NATREX in the preunification period. The actual real exchange rate of the German mark converged to the NATREX. In the postunification period, the medium run NATREX increased due to the rise in time preference and the cyclically adjusted q-ratio. The actual real exc…

How to pay for the war in times of imperfect commitment. Adam Smith and David Ricardo on the Sinking Fund

2014

AbstractThe paper proposes a comparative analysis of Smith's and Ricardo's views on the sinking fund. It shows that Smith and Ricardo agreed in stressing the ineffectiveness of the sinking fund as a policy instrument targeted at public debt repayment and tax-burden relief, pointing out that its actual workings had paradoxically helped to increase rather than reduce British total debt-load. Moreover, their explanation of the sinking fund paradox integrates a defective fiscal commitment technology with powerful politicians’ incentives to siphon off the money stored in the sinking fund to meet sudden increases of public expenditure whenever the occasion arose.

From 2009 to 1929

2010

The current and still unfolding crisis of our economic system shows disturbing resemblances to the Great Depression in terms of magnitude, triggering mechanisms, and curative public interventions. This paper compares the experience, mechanisms, and consequences of these two crises in light of the analysis of Fisher, Keynes, and Minsky. This analysis proves very useful for understanding the triggering mechanisms of the current crisis, as well as its propagation mechanisms. It also addresses two dilemmas within the debate about the curative as well as preventive measures for getting out of the crisis and avoiding a new disaster: the dilemma of monetary activism and that of liquidity.

Democratic governments, economic growth and income distribution

1995

That in democracies more inequality leads to more redistribution is an implication of Allan Meltzer and Scott Richard's well-known model ( 1981).1 That, in turn, more redistribution leads to less growth is a generally accepted proposition. That "inequality is harmful for growth" (Persson and Tabellini, 1994) is thus the predictable result of the introduction of policy-making à la Meltzer and Richard into the theory of growth. The small literature in which such introduction has been attempted includes contributions by Alberto Alesina, Giuseppe Bertola, Roberto Perotti, Thomsten Persson, Dani Rodrik, Gilles Saint- Paul, Guido Tabellini and Thierry Verdier. Short surveys are provided by Perott…